US futures are easing decrease after the Dow Jones & S&P 500 hit file highs on Friday. Earnings will step up a gear this week with Netflix, Johnson & Johnson, IBM & Coca-Cola due. USD slumps to six week lows.
- Dow futures -0.2% at 34122
- S&P futures -0.3% at 4172
- Nasdaq futures -0.5% at 13976
- FTSE -0.04% at 7011
- Dax -0.15% at 15436
- Euro Stoxx +0.03% at 4033
US shares ease decrease after file positive aspects
US futures are pointing to a softer begin throughout the board after each the Dow Jones and the S&P500 closed at recent file highs on Friday. The Nasdaq additionally ended larger closing for the week simply 0.3% off its February file excessive. Yields stay beneath the important thing 1.60% stage though are ticking larger from the in a single day low 1.55%
Upbeat banks earnings, robust macro knowledge, along with a robust vaccine rollout and the Fed promising to maintain financial coverage lose for longer all helped elevate shares to file highs.
Over the weekend the US hit a key milestone with over 200 million first covid vaccine doses now given – half the grownup inhabitants. Immediately marks the important thing deadline set by President Biden for the vaccine to be accessible for all American adults. The faster the vaccine is rolled out, the sooner, safer the financial reopening.
US earnings ramp up
US earnings will ramp up a gear this week with Coca-Cola, IBM, Netflix & Johnson & Johnson all as a result of replace the market. With shares buying and selling at file highs, traders will probably be eager to see whether or not the numbers assist such lofty valuations.
The place subsequent for the Dow Jones?
The Dow Jones pushed over the important thing 34,000 stage for the primary time in historical past final week taking out all topside resistance on its method. The subsequent stage of resistance is probably going 35000. The RSI is in overbought territory so some consolidation or a pull again may very well be on the playing cards.
Ought to danger sentiment falter and the Dow Jones head decrease, fast assist may be seen at 33750, the higher band of the ascending channel relationship again to November. A transfer beneath there might see the sellers encounter assist at 33400 that is the 20 EMA and likewise an ascending development line relationship again to pre-pandemic January and February 2020. Under there, the 50 EMA and mid level to the ascending channel 32700 comes into play. It could take a transfer beneath 32000 to negate the latest uptrend.
FX – US Greenback trades at 6 week low, GBP rallies
US Greenback is buying and selling decrease versus its main friends dropping to a 6 week low at the same time as US treasury yields choose up off in a single day lows and transfer larger. Nonetheless at 1.58% yields are nonetheless a great distance from the 1.75% highs hit earlier this month.
Latest US knowledge pointed to inflationary pressures constructing, each US CPI and retail gross sales beat forecast. Nevertheless the Fed reiterated throughout final week that they imagine any rise in inflation will probably be short-term.
GBP/USD is the highest performing pair on the time of writing, boosted by re-opening optimism. Nevertheless, different majors equivalent to AUD/USD & EUR/USD are additionally capitalising on the weaker dollar
- GBP/USD +0.5% at 1.3909
- EUR/USD +0.4% at 1.2033
Oil pauses as covid issues return
After rallying over 6% throughout the earlier week, oil costs are easing again on Monday. Considerations over rising covid circumstances and tighter lockdown restrictions significantly in creating international locations equivalent to India and components of South America are dragging on demand for the again stuff and retaining any positive aspects in verify.
Oil surged throughout the earlier week, lifted by falling stock knowledge and each OPEC & the EIA elevating the demand outlook as international locations such because the US and the UK race forward with their vaccine programmes
- US crude trades -0.14% at $63.13
- Brent trades -0.28% at $66.30
— to www.actionforex.com