US open: Wall Street points to a mixed open, PPI inflation in focus

US stocks are set for a mixed start as Fed Dove Brainard interviews for the top job and ahead of PPI data.

USA (2)

US futures

Dow futures -0.08% at 36397

S&P futures +0.03% at 4703

Nasdaq futures +0.15% at 16367

In Europe

FTSE +0.03% at 7309

Dax +0.29% at 16091

Euro Stoxx +0.21% at 4367

Learn more about trading indices

A more dovish Fed coming?

US stocks are pointing to a mixed start after the S&P500 notched up yet another record close in the previous session, its eighth straight record close.

Today the Nasdaq is leading the charge whilst the Dow is trading mildly in the red as investors weigh up the possibility of a reshuffle at the Fed. News that Fed Governor Lael Brainard who is considered to be more dovish than Fed Chair Powell attended an interview at the White House. Brainard’s recent commentary has shown that she is in no rush to raise interest rates. A more dovish Fed Chair would be less supportive of cyclical stocks whilst boosting high growth companies. Powell’#’s current term ends in February.

Attention now will turn to US inflation with the release of PPI data today and CPI inflation data tomorrow. PPI is expected to continue ticking high to 8.7% YoY in October and rising 0.5% MoM.

Where next for S&P 500?

The S&P 500 recorded its 8th straight record close on Monday and futures  are edging higher still. The price trades above the rising trendline, although the RSI is firmly in overbought territory. Any move lower could be used as a buying opportunity. It would take a move below 4550 for sellers to gain traction and the 50 sma to be exposed.

S&P 500 chart

 

FX – USD extends losses, EUR shrugs off rebounding German sentiment

US Dollar is easing lower amid uncertainty surrounding the next move by the Fed and the possibility of a reshuffle at the Fed.

EUR/USD has shrugged off impressive German data. The closely watched German ZEW sentiment data unexpected rose in November to 31.7, up from 22.3 in October and well ahead of the 19 forecast. This improvement in sentiment comes after supply chain bottlenecks had dragged the index lower over the past 5 months.

GBP/USD +0.12% at 1.3580

EUR/USD +0.01% at 1.1586

 

Oil rises for third straight session

Oil prices are on the rise for a third straight session supported by several bullish factors such as tight supply, the passage of the US infrastructure bill, and Saudi Armco raising its official selling price. However, price gains may be capped as the Biden administration considers what action it can take to bring down prices at the pumps. The release of key reserves is a possibility being floated as a way to bring down prices. That said bullish factors are still aplenty for now. Whether such as move by the Fed really brings down prices would depend largely on how much is released. For now, this is still at the ideas stage so the impact is minimal.

API inventory data is due later today.

WTI crude trades +0.35% at $81.42

Brent trades +0.3% at $83.30

Learn more about trading oil here.

 

Looking ahead

13:30 PPI

14:00 Fed Chair Powell

 

 

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.

 

 


 

Disclaimer

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.