European Open: WTI in focus for the US and Canada’s employment reports

Asian Indices:

Australia's ASX 200 index rose by 36.2 points (0.54%) and currently trades at 6,684.20
Japan's Nikkei 225 index has risen by 158.32 points (0.6%) and currently trades at 26,648.85
Hong Kong's Hang Seng index has risen by 15.04 points (0.07%) and currently trades at 21,658.62
China's A50 Index has risen by 45.74 points (0.31%) and currently trades at 14,784.51

UK and Europe:

UK's FTSE 100 futures are currently down -28.5 points (-0.4%), the cash market is currently estimated to open at 7,160.58
Euro STOXX 50 futures are currently down -1 points (-0.03%), the cash market is currently estimated to open at 3,487.50
Germany's DAX futures are currently down -11 points (-0.09%), the cash market is currently estimated to open at 12,832.22

US Futures:

DJI futures are currently down -95 points (-0.3%)
S&P 500 futures are currently down -52 points (-0.43%)
Nasdaq 100 futures are currently down -14.5 points (-0.37%)

US vs Canadian employment reports at 13:30 BST

Employment reports usually catch trader’s attention, but today we have employment reports for the US and Canada released together for added excitement. Expectations are for Canada’s employment growth to continue to soften and unemployment remain flat at 5.1%. A similar pattern is apparent for US data with growth set to soften and unemployment remain at 3.6%. Obviously, the last thing traders want is for data to come in as expected - as we crave a divergence. Therefore a strong US report compared with a weaker Canadian report should be bullish for USD/CAD, or send it lower should US data disappoint relative to Canadian data. However, another way to play this is via oil (which tends to benefit the Canadian dollar if it rises).

WTI futures – 1-hour chart

Energy prices are on the rebound which has sent WTI to a 2-day high and produce a bullish engulfing yesterday. Notice how a key low formed at 95.28 near the 200-day eMA, bullish momentum has since turned higher. Furthermore, spikes of volume now accompany rising prices as opposed to bearish moves, so I suspect there’s more upside potential for oil. The bias remains bullish above the $100 support zone but $101.50 may also provide support. A break above $104.70 brings the $108 resistance zone into focus.

How to start oil trading

FTSE 350 – Market Internals:

FTSE 350: 3990.68 (1.14%) 07 July 2022

278 (79.20%) stocks advanced and 60 (17.09%) declined
5 stocks rose to a new 52-week high, 9 fell to new lows
18.8% of stocks closed above their 200-day average
98.29% of stocks closed above their 50-day average
11.11% of stocks closed above their 20-day average

Outperformers:

+ 10.5% - Currys PLC (CURY.L)
+ 8.21% - Aston Martin Lagonda Global Holdings PLC (AML.L)
+ 8.09% - ASOS PLC (ASOS.L)

Underperformers:

-8.84% - Baltic Classifieds Group PLC (BCG.L)
-4.96% - Persimmon PLC (PSN.L)
-4.12% - Flutter Entertainment PLC (FLTRF.L)

Economic events up next (Times in BST)

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.