US open: Stocks push higher with Ukraine, inflation in focus

US futures

Dow futures +0.47% at 33370

S&P futures +0.39% at 4405

Nasdaq futures +0.54% at 14047

In Europe

FTSE +3% at 7430

Dax +3% at 14470

Euro Stoxx +3% at 3945

Learn more about trading indices

Hopes of talks cautiously lift stocks.

US stocks are set to edge slightly higher on Friday after a spectacular reversal on Thursday. However, they are still set to end the week in the red.

Risk sentiment suddenly improved yesterday following the announcement of sanctions on Russia, which were, once again, milder than expected. The sanctions were aimed at banks and financial markets once again.

Russia continues advancing towards Kiev despite the sanctions and cushioned by a build up of $600 billion in currency reserves thanks in part to surging oil and gas prices.

Reports that China’s leader Xi Jinping has told Putin to hold talks with the government in Kiev, are lifting risk sentiment further. Although Russian forces continue to attack, there could be hope of some level of negotiation.

On the data front, a slew of data revealed that the US consumer was holding up well even as inflation shot higher. The Fed’s preferred measure of inflation, the core PCE rose to 5.2%, above the 5.1% forecast and up from 4.9% in December. Personal spending also rose 2.1%, after falling -0.8% in December.

The data comes ahead of the Fed’s rate decision in March. The strong data would be supportive of a more aggressive move by the Fed to hike rates, maybe a 50 point hike, rather than 25 basis points. However, what the Fed plans to do could depend on what happens in eastern Europe.

Where next for the S&P500?

The S&P 500 rebounded off 4106 yesterday’s low. The rise higher has broken above several important resistance levels, which along with the bullish crossover on the MACD is keeping buyers hopeful of further gains. Buyers will be looking for a move over 4350 the 50sma and falling trendline support ahead of horizontal resistance at 4360. On the flip side support can be seen at 4275 the lae January low ahead of 4250 the February 21 low.

FX markets USD rallies, EUR rises

USD is trading lower despite upbeat data.

EUR/USD trades higher after German GDP contracted less than feared in Q4. GDP fell -0.3%, less than -0.7% initially estimated. Eurozone economic sentiment also improved to 114, up from 112.7, thanks to rising confidence in services retail and construction.

GBP/USD +0.1% at 1.3393

EUR/USD +0.2% at 1.1214

Oil slips but set for weekly gains of 1.8%

Oil prices easing lower, back below $100, but are still on track for gains in the region of 1.7% this week as Russia, Ukraine headlines remain in focus.

Oil fell away from 7-year highs after Western sanctions on Russia left the energy sector alone and after President Biden said that the US could release oil reserves to lower the price. A large than expected build in stockpiles also dragged on the price.

WTI crude trades -0.12% at $92.20

Brent trades -0.4% at $95.35

Learn more about trading oil here.

Looking ahead

18:00 Baker Hughes rig count

How to trade with City Index

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

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