US open: Wall Street pauses for breath with Fed in focus

US stocks steady after reaching fresh all time highs. Attention now turns to the Fed which kicks off its two day monetary policy meeting today.

USA (2)

US futures

Dow futures +0.09% at 35944

S&P futures +0.03% at 4615

Nasdaq futures -0.13% at 15890

In Europe

FTSE -0.72% at 7241

Dax +0.42% at 15889

Euro Stoxx +0.07% at 4284

Learn more about trading indices

Economic focus returns with FOMC starting

US stocks are pointing to a relatively quiet start, in cautious trade, as investors take a breath from the recent earnings driven rally and  look ahead to the Federal Reserve monetary policy meeting.

The two-day meeting kicks off today with the Fed widely expected to announce the scaling back of its bond buying programme in a bid to ease inflation. Given that the tapering of monthly bond purchases is broadly anticipated. Investors will be watching what the Fed is saying about inflation and the timing surrounding the first interest rate rise.

Earnings from with names such as Pfizer, T-Mobile, ConocoPhillips, Lyft and Under Armour are also due.  So far earnings season has been a positive for stocks, calming investor concerns over surging inflationary pressures. However, today and tomorrow could see the macro economic picture back in focus.

Tesla drop pre-market

Tesla shares will be under the spotlight after Musk tweeted that the Hertz deal hasn’t been signed yet. Hertz had announced that it had ordered 100,000 Tesla cars which sent Tesla’s share price 13% higher on the day of the announcement whilst boosting the market capitalization to $1 trillion. Needless to say, the stock is trading lower pre-market.

Where next for S&P 500?

The S&P500 is extending its rebound from the October low of 4270, pushing to fresh all-time highs. The RSI is edging towards overbought territory so there could be some consolidation or an ease back soon. Bulls will look to break above 4626 to reach fresh all-time highs. It would take a move below 4550 to negate the bullish up trend.

S&P 500 chart

FX – USD edges high, GBP hit by Brexit

The US Dollar is ticking a few pips higher as the FOMC meeting kicks off. The Fed are broadly expected to announce the start of the tapering of its bond purchases.

GBP/USD is underperforming amid rising Brexit tensions and ahead of the BoE interest rate announcement on Thursday.  French-British relations have deteriorated over post Brexit fishing rights. Although France has backed down over applying sanctions.

GBP/USD -0.22% at 1.3632

EUR/USD -0.1% at 1.1595


Oil looks to API data as supply remains tight

Oil prices are easing lower after three straight days of gains. Oil prices remain well supported around multi-year highs on strong demand and tight supply.

The OPEC+ group announced that they undershot expected pace of output increases last month. The group pumped 27.5 million barrels a day, up 190,000, but below the 254,000-increase permitted.

Investors are likely to wait for today’s API data and tomorrow’s EIA numbers before taking a decision.

WTI crude trades -0.48% at $82.93

Brent trades -0.27% at $84.25

Learn more about trading oil here.


Looking ahead

20:30 API crude stockpile change


How to trade with City Index


Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade.


How to trade with

Follow these easy steps to start trading with today:

  1. Open a account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. 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 for the complete Risk Disclosure Statement.