US open: Stocks point to quiet start, jobless claims beat

After strong gains in the previous session, Wall Street stocks are pointing to a muted open. Jobless claim unexpectedly fall and oil extends losses.

USA (2)

US futures

Dow futures -0.04% at 34112

S&P futures -0.1% at 4170

Nasdaq futures -0.24% at 13897

In Europe

FTSE +0.08% at 6907

Dax +0.6% at 15285

Euro Stoxx  +0.76% at 4007

Learn more about trading indices

Jobless Claims unexpectedly drop

US stocks are set for a quiet open after a strong rally in the previous session. All three major indices finished the previous session solidly higher.

The improvement in the US labour market which was seen last week continued. 547K Americans made initial claims, down from 586k recorded last week and well below the forecast rise to 617k.

This is the lowest level for jobless claims since the pandemic and reveal that the recovery in the labour market remains on track.

Investors continue to wrestle over the vaccine led recovery and stronger earnings against rising covid cases particularly in India and Japan. Cases in India breached 300,000 a new grime global milestone.

Airlines will be in focus after results were not as bad as feared. Strength of demand for airline shares could provide clues as to the strength of the reopening trade.

Jobless claims are by far the most important US macro data to be released this week, a week that has been dominated by earnings.

US pledge on Earth Day

President Biden has pledged to cut the carbon dioxide emissions by 50% by the end of the decade compared to 2005 levels.

The pledge comes as the US looks to re-establish itself as a leader of the environmental agenda, after years of falling behind with Trump.

The new targets mean an accelerated move away from combustion engines in transportation. EV’s will be increasingly more in focus. Elsewhere, companies which are reducing their carbon foot print will be better positioned to respond to climate change risks and tightening regulation going forward.

Where next for the Dow Jones?

The Dow Jones trades above its ascending trend line dating back to early March. It trades above its 20 & 50 EMA on the 4 hour chart and it hovering around its all time high.

The 20 EMA & 50 EMA are both pointing marginally higher as is the RSI suggesting that a move higher could be the path of least resistance.

Immediate resistance sits at 342248 the all time high, a move beyond here is needed to move towards 35000 round number.

Support can be seen at 34000 the 20 EMA and round number ahead of 33900 the 50 EMA. A break below 33800 the ascending trendline could sellers gain traction.

FX – ECB keeps policy unchanged, as expected

As expected, the ECB left rates and the PEPP unchanged as expected. With no new economic projections due until June, the ECB announcement has turned into a bit of a non-event.

Attention will now turn to the post meeting press conference with ECB President Christine Lagarde. With the vaccine rollout picking up and business sentiment improving we could hear a slightly more upbeat tone from the central bank President

GBP/USD  -0.3% at 1.3885

EUR/USD +0.08% at 1.2043

Oil extends losses

Oil prices are falling for a third straight session amid an unexpected build in crude stockpiles and as covid cases soar in India and Japan.

EIA data revealed that US crude stockpiles unexpectedly rose in the week April 16, confirming API data from Tuesday.

At the same time covid cases are soaring in India and Japan, the world’s third and fourth largest consumers of oil respectively. More states in India are implementing lockdowns and Tokyo & Osaka are both on the brink of imposing curbs. As a result, the demand outlook for oil has softened hitting sentiment for oil.

US crude trades -0.5% at $61.00

Brent trades -0.5% at $64.43

Learn more about trading oil here.

The complete guide to trading oil markets

Looking ahead

15:00 Existing home sales

15:00 EUR consumer confidence


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 for the complete Risk Disclosure Statement.