US open Stocks set for a mixed open oil rises on pipeline attack

Article By: ,  Senior Market Analyst

US futures

Dow futures +0.34% at 34889

S&P futures +0.06% at 4234

Nasdaq futures -0.4% at 13657

In Europe

FTSE +0.1% at 7134

Dax +0.01% at 15382

Euro Stoxx  -0.24% at 4021

Learn more about trading indices


Fresh highs for S&P & Dow

US futures point to a mixed start on Monday as commodity prices surge and after a cyber attack on the largest US gasoline.

The Dow Jones & the S&P500 both closed at record highs on Friday after the unexpectedly weak non farm payroll numbers. With just 266k new jobs created versus 1 million expected, the data supported the Fed’ s dovish stance. The prospect of low rates for longer boosted stocks across the board on Friday.

Today, the tech heavy Nasdaq is set to open lower despite impressive results for big tech across earning season.

The reopening play is revealing itself in the commodity space which is helping cyclicals and energy stocks push higher.

Copper trades at an all time high.

There is no high impacting US data due for release today. Investors will look ahead to Wednesday’s CPI release to further gauge the Fed’s next move.

Earnings

This week sees the pace of earnings ease slightly. Today the stocks in focus will include the recently IPO’d Roblox in addition to  Marriott International.


FX – GBP rallies on weak USD & post UK elections

The US Dollar is trading lower as investors continue to digest the shockingly weak US jobs report.

GBP/USD is outperforming its peers, piercing 1.41, after UK local election result and the weak US jobs report. The Scottish Nationalist Party won the regional elections in Scotland but failed to secure a majority. The party will continue to push for another independence referendum but without an absolute majority and with PM Boris Johnson saying no the Pound is breathing a sigh of relief.

Re-opening optimism is also lifting the Pound. Boris Johnson is set to announce the next step in easing lockdown restrictions.

GBP/USD  +0.9% at 1.4109

EUR/USD  +0.01% at 1.2163


Oil extends gains on pipeline attack

Oil is edging higher, building on gains from the previous week after a cyber attack on a top US pipeline. The Colonial Pipeline which serves half of the East Coast said that its main lines were still out of commission despite efforts to bring them back.

The US government is using emergency powers to aid the process and provide fuel supplies to the market.

This should be a short term disruption; the oil markets are reacting calmly so far. The longer that it takes to normalize production the more nervous the market will become.

The weaker US Dollar is also supporting oil prices, making it cheaper for buyers with other currencies.

Whilst the reopening in the West continues to support the oil demand outlook, elevated case numbers in India and Japan continue to act as a drag.

US crude trades +0.6% at $65.30

Brent trades +0.7% at $68.70

Learn more about trading oil here.

The complete guide to trading oil markets


Looking ahead

02:30 China CPI April


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