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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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01 12 US PRE OPEN

Article By: ,  Financial Analyst
December 1, 2020 7:53 AM

U.S Futures rising - Watch TSLA, PFE, BNTX, XOM

The S&P 500 Futures are on the upside after they closed mixed on Monday.

Later today, the U.S. Commerce Department will release October construction spending (+0.8% on month expected). The Institute for Supply Management will report its Manufacturing Index for November (58.0 expected). Research firm Markit will publish final readings of November Manufacturing PMI (56.7 expected).

European indices are bullish. Research firm Markit has published final readings of November Manufacturing PMI for the eurozone at 53.8 (vs 53.6 expected), for Germany at 57.8 (vs 57.9 expected), for France at 49.6 (vs 49.1 expected) and for the U.K. at 55.6 (vs 55.2 expected). The European Commission has posted eurozone's November CPI at -0.3% on month (as expected). The German Federal Statistical Office has posted November jobless rate at 6.1% (vs 6.3% expected). OECD sees 2020 Euro Area GDP at -7.5% (vs -7.9% previously) and at +3.6% in 2021, vs +5.1% previously. It sees U.S. GDP at -3.7% in 2020, vs –3.8% previously, and at +3.2% in 2021, vs +4% previously. World GDP is expected at -4.2% in 2020, vs -4.5% previously, and at +4.2% in 2021, vs +5% previously.

Asian indices all closed in the green. China's official Manufacturing PMI rose to 52.1 in November (51.5 expected) from 51.4 in October and Non-manufacturing PMI climbed to 56.4 (56.0 expected) from 56.2. Japan's jobless rate rose to 3.1% in October (as expected) from 3.0% in September. The Reserve Bank of Australia kept its benchmark rate unchanged at 0.10% as expected. RBA reiterated that it "is not expecting to increase the cash rate for at least 3 years".

WTI Crude Oil remains under pressure. OPEC+ talks are delayed for 2 days to give ministers more time to reach a deal. The U.S. Energy Information Administration reported that U.S. oil output rose 2.7% on month to 10.86M b/d. Later today, American Petroleum Institute (API) will release the change of U.S. oil stockpile data for November 27.

U.S indices closed down on Monday, pressured by Energy (-5.37%), Banks (-2.93%) and Insurance (-1.99%) sectors.

Approximately 93% of stocks in the S&P 500 Index were trading above their 200-day moving average and 82% were trading above their 20-day moving average. The VIX Index declined 0.25pt (-1.2%) to 20.59 at the close.

On the US economic data front, Market News International's Chicago Business Barometer dropped to 58.2 on month in November (59.0 expected), from 61.1 in October. Finally, Pending Homes Sales declined 1.1% on month in October (+1.0% expected), compared to a revised -2.0% in September.  

On Tuesday, Markit's US Manufacturing Purchasing Managers' Index for the November final reading is expected to remain at 56.7 on month, in line with the November preliminary reading. Finally, Construction Spending for October is expected to rise 0.8% on month, compared to +0.3% in September.

Gold bounces after suffering its worst monthly decline in four years while the U.S dollar consolidates after having rebounded yesterday.

Gold rose 27.47 dollars (+1.55%) to 1804.43 dollars.

The dollar index fell 0.05pt to 91.822.


U.S. Equity Snapshot


Tesla (TSLA): "S&P Dow Jones Indices has determined it will add Tesla to the S&P 500 at its full float-adjusted market capitalization weight effective prior to the open of trading on Monday, December 21, 2020."


Source: TradingView, GAIN Capital

Pfizer (PFE) and BioNTech (BNTX), the pharma, "have submitted on Monday, November 30, 2020, a formal Application for Conditional Marketing Authorization (CMA) to the European Medicines Agency (EMA) for their mRNA vaccine candidate, BNT162b2, against COVID-19."

Exxon Mobil (XOM), an oil giant, said it expects after-tax fourth quarter impairment charge of 17 billion to 20 billion dollars, resulting from removal of less strategic assets from its development plan.

Zoom Video Communications (ZM), the leader in modern enterprise video communications, dived after hours after posting third quarter gross margin down to 67% from 71% in the prior quarter.

Nio (NIO), the Chinese electric-vehicle maker, delivered 5,921 vehicles in September, up 109.3% year on year. Separately, the stock was upgraded to "neutral" from "sell" at Goldman Sachs.

Fedex (FDX), the package delivery service company, was upgraded to "overweight" from "equalweight" at Barclays.

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