US open: Wall Street edges higher shrugging off inflation fears for now
Fiona Cincotta October 13, 2021 12:52 AM
Stocks are set to claw back some losses as inflation fears ease for now. JOLTS job openings could raise more questions than provide answers.
Dow futures +0.07% at 34520
S&P futures +0.12% at 4365
Nasdaq futures +0.27% at 14750
FTSE -0.35% at 7117
Dax -0.31% at 15143
Euro Stoxx -0.45% at 4050
Nasdaq leads gains
US stocks are pushing higher following yesterday’s selloff, with the tech heavy Nasdaq leading the gains, possibly after an encouraging update from Tesla.
Investors are managing to push inflation and stagflation fears aside for now, even as oil prices remain elevated around $80 per barrel. The market appears to be taking a breather as inflation fears fueled by the energy crisis and global supply chain disruptions will be back under the microscope later in the week with CPI and retail sales data.
With third quarter earnings just around the corner, cost pressures will be in focus across earning season and are likely to be the barometer of investor confidence.
Looking ahead US JOLTS job openings are due to be released. Given the surprisingly weak US NFP report, investors would be forgiven for assuming the JOLTS job openings will be low. However, recently JOLTS job opening data has been adding to the conundrum rather than resolving questions. Over 10 million job vacancies are expected to be reported.
Where next for the S&P500?
The Dow Jones is picking up off yesterday’s low of 34250. It trades caught between the 50 sma and the 200 sma on the 4 hour chart. The RSI is providing few clues at neutral point. Buyers might look for a move over the 200 sma at 34750 for further gains towards 35000 psychological level. Sellers might look for a move below the 50 sma at 34380 and yesterday’s low of 34250 for a deeper sell off.
FX – USD drifts, GBP rises after solid jobs data
The US Dollar is easing a few pips lower but remains around yearly highs as treasury yields hit at 5 month high of 1.63%
GBPUSD is on the rise after UK jobs data revealed that the labour market continues to recover. UK vacancies topped 1 million suggesting that the labour market can absorb the extra workers released from furlough as the scheme ended. The ONS reported a record 235k jobs added in July. More people are in work now than in February 2020. The data raised bets that the BoE could raise interest rates sooner.
GBP/USD +0.3% at 1.3628
EUR/USD -0.05% at 1.1570
Oil set for 5th straight day of gains
Oil prices are on the rise for a fifth straight session as the energy crunch continues. Coal prices rose to a record high in the previous session, gas prices have cooled slightly but is still four times more expensive than at the start of the year. Comparatively oil is more attractive lifting demand.
Technically oil is looking overbought on the daily chart so there could be a period of consolidation or a move lower on the cards. That said the outlook is still bullish whilst OPEC remain cautious over raising output.
WTI crude trades +0.4% at $80.43
Brent trades +0.26% at $83.56
14:00 JOLTS job openings
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.