US open: Futures steady, jobless claims at fresh pandemic low
Fiona Cincotta September 9, 2021 8:58 PM
US stocks look set for a very mildly softer open. US jobless claims hit a fresh pandemic low. The upbeat data has't managed to disperse the cloud hanging over the markets this week.
Dow futures -0.03% at 34983
S&P futures -0.02% at 4508
Nasdaq futures -0.01% at 15612
FTSE -1.2% at 7012
Dax -0.19% at 15594
Euro Stoxx -0.18% at 4170
Futures head a few ticks lower
US stocks area heading towards a mildly softer open, extending losses for a fourth straight session despite encouraging jobless claims data.
Initial jobless claims rose by 310k, the lowest level since the pandemic started and last weeks’ was also revised lower to 345k. Whilst jobless claims are trending in the right direction they weren’t remarkable enough for the market to shake off the grey cloud which has been looming over the markets this week.
Uncertainty over the timing of the Fed’s plans to taper coupled with concerns over slowing economic growth have dragged on sentiment keeping bulls on the sidelines as stocks fall back from record highs. Whilst the move lower has been technically significant for the Dow, an index more closely tied to cyclical stocks, which has slipped below the 50 sma. The move lower so far on the S&P is not so far technically significant, thanks to high growth tech stocks which have continued to draw inflows.
That said, tech stocks but more particularly gaming stocks will be under the spotlight amid the ongoing crackdown in China. Beijing has temporarily suspended approval for all new online video games. US listed gaming stocks such as Roblox, Activation Blizzard and Take-Two have fallen pre-market.
Where next for the S&P 500?
The S&P500 continues to trade in its ascending channel dating back to early May. After hitting an all time high of 4550 the price has been easing lower. However, the overall trend remains bullish and no key levels have been breach so far. Support could be tested at 4465 and 4427 the 50 sma. A break below here could see sellers gain traction to 4350. A move beyond 4550 is needed for fresh all time highs.
FX – USD falls on Fed uncertainty, ECB tapers
The US Dollar is edging lower amid growing concerns over the health of the US economic recovery and after Atlanta Fed President Raphael Bostic said that it is unlikely that the Fed will move to taper bond purchases at the September meeting. After the ECB’s move this highlights policy divergence between the 2 central banks.
EUR/USD – The ECB voted to keep interest rates unchanged, as expected. The central bank also agreed to moderately reduce the PEPP in Q4 but confirmed it will run until at least the end of March. In other words they took steps to dial back support but reassured that there would be plenty to come if necessary. The Euro has pushed moderately higher following the announcement. Attention is now on the ECB press conference.
GBP/USD +0.48% at 1.3813
EUR/USD +0.25% at 1.1840
Oil weighs up demand concerns vs slow output
Oil prices are holding steady on Thursday as demand concerns amid rising Delta covid cases offset a decline in output from the Gulf of Mexico owing to Hurricane Ida. Around 77% of production in the region has yet to start following on from the storm.
Separately the US Energy Information Administration cut its 2021 global oil demand outlook although the 2022 outlook remains constant. The move comes amid growing concerns over the health of the global economic recovery.
Yesterday API inventory data revealed that the crude drawdown was smaller than expected. EIA crude stockpile data is due later today.
US crude trades +0.06% at $69.20
Brent trades +0.12% at $72.47
15:30 EIA oil stock change
17:00 BoC Governor Macklem speech
19:00 Fed Williams speech
How to trade with City Index
Follow these easy steps to start trading with City Index today:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels
- Place the trade.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.