US open Futures mixed as stimulus approved yields rise

Article By: ,  Senior Market Analyst

US futures

Dow  futures +0.2% at 32557

S&P futures -0.2% at 3927

Nasdaq futures -1.2% at 12890

In Europe

FTSE +0.1% at 6742

Dax -0.65% at 14480

Euro Stoxx -0.4% at 3828

Learn more about trading indices


Biden signs off on $1.9 trillion stimulus & vaccine drive

President Biden signed off on the largest fiscal stimulus bill in US history at the same time as pledging an acceleration to the vaccine drive.

Biden promised that all Americans would have the covid vaccine by 1 May to enable to return to normal life by 4 July Independence Day.

Combined, the stimulus and the vaccination pledge are driving economic recovery expectations and inflation expectations higher once again.

US 10 year yields which had dropped below 1.5% on Wednesday are now back over 1.60% taking the shine off stocks which boosting the US Dollar.


Stocks point to a mixed open

US stocks are pointing to a mixed start. The more cyclical Dow Jones is looking to extend gains into the weekend as the drive for value intensifies. The tech heavy Nasdaq is bracing itself for a deep selloff. Rising treasury yields are once again raising questions over lofty growth stock valuation. Meanwhile the tech sector in the S&P is dragging on the index.

Stocks in focus :

Tesla -2.9% pre-market after a fire at the electric car makers factory in California. The were no injuries and the fire in now under control. However it will have set back production at a time when rivals are ramping up.

Docusign -4% pre-market despite reporting forecast beating Q4 results and an upbeat guidance. The stock has surged 200% across the past 12 months.

Where next for Docusign share price?

Despite surging 200% over the past 12 months, the rally started to lose momentum from October. The share price traded within an ascending channel which it broke out from in early March.
The stock sold off sharply as part of the broader tech rout before finding a floor at 185p.
The stocks trades below its 50 & 20 sma – a negative bias. Support can be seen at 200 round number ahead of 187.00.
Any attempt to further the recovery would need to break through 240 for more buyers to jump in.



Vaccine developments: AstraZeneca & Novavax

AstraZeneca’s share price is holding up considerably well considering that the number of countries that. The stocks trades -0.5% as more and more countries in Europe halts the use of the vaccine amid fears that it is linked to blood clotting.

Novavax +16% pre-market has reported that its covid vaccine is 96% effective in late trials against the original covid strain. It was also 86% effective against the British strain. The stock rallied over 8% in the previous session & trades firmly higher pre-market.


FX – UK GDP -2.9% MoM

The US Dollar is rebounding from yesterday’s selloff, tracing US treasury yields higher. DXY trades +0.4% at 91.80.

GBP/USD trades lower after data revealed UK economy contracted -2.9% in January vs 1.2% growth in December. Exports to the EU also plunged 40% in the month following Brexit.

GBP/USD trades -0.6% at 1.3903

EUR/USD trades -0.35% at 1.1929


Oil ends the week on a calm note

After some big swings through the week, oil is heading into the weekend approximately flat.

Oil prices jumped 2.4% on Thursday, boosted by Joe Biden signing off on the $1.9 trillion stimulus package in US and his pledge to vaccinate all American adults by the start of May. Future oil demand expectations rose in line with expectations of a much quicker US recovery.

OPEC revealed in its monthly report a downward revision in oil demand in the first half of the year, making last week’s OPEC+ group’s decision less surprising. OPEC also upwardly revised its demand estimates for H2.

Baker Hughes rig count data is due later today.

US crude trades +0.02% at $65.94

Brent trades -0.1% at $69.25

Learn more about trading oil here.

The complete guide to trading oil markets


Looking ahead

14:00 Canadian Jobs Data

15:00 Michigan Consumer Confidence

18:00 Baker Hughes Rig Count

Fiona Cincotta looks at the price action and levels to watch in USD/CAD here


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 www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

© City Index 2024