12 08 US PRE OPEN

US Futures rebound - Watch TSLA, MRNA, KODK, LBTYA

The S&P 500 Futures are rebounding after they ended in negative territory yesterday. Investors were concerned after Senate Republican leader Mitch McConnell said there was no progress on talks for a Covid-19 relief package.

US July CPI increased 1% in July YoY (+0.7% expected) after +0.6% in June.

European indices are slightly on the upside. The European Commission has reported June industrial production at +9.1% (vs +10.0% on month expected). The U.K. Office for National Statistics has posted 2Q GDP at -20.4% on quarter (vs -20.5% expected), June industrial production at +9.3 (vs +9.2% on month expected), manufacturing production at +11.0% (vs +10.0% on month expected) and trade balance at 5.3 billion pounds surplus (vs 2.6 billion pounds surplus expected).

Asian indices closed in dispersed order. The Reserve Bank of New Zealand kept its benchmark rate unchanged at 0.25% as expected, while expanding the Large Scale Asset Purchase program up to 100 billion New Zealand dollars from 60 billion New Zealand dollars previously. RBNZ said any future move to a lower or negative official cash rate could provide an effective way to deliver additional monetary stimulus if needed.

WTI Crude Oil futures are posting a rebound. The U.S. Energy Information Administration (EIA) raised the 2021 U.S. crude output forecast to 11.14M b/d from 11.01M b/d projected in July, according to EIA's monthly Short Term Energy Outlook. The American Petroleum Institute (API) reported that U.S. crude-oil inventories fell 4.4 million barrels last week. Later today, EIA will release official crude oil inventories data for the same week.

Gold slightly recovers after yesterday's sell off on US fiscal stimulus uncertainties;

Gold rose 19.82 dollars (+1.04%) to 1931.71 dollars.

The US dollar consolidates after bouncing yesterday on rising US-China tensions.

The dollar index fell 0.13pt to 93.501.

U.S. Equity Snapshot

Tesla (TSLA), the electric-vehicle maker, is surging before hours after announcing a 5 for 1 stock split in order to make stock ownership more accessible to employees and investors.

Source: TradingView, GAIN Capital

Moderna (MRNA), a biotechnology company, announced a 1.53 billion dollars supply agreement with the U.S. government for an initial 100 million doses of mRNA COVID-19 vaccine (mRNA-1273).

Eastman Kodak Company (KODK) reported a second quarter loss of 5 million dollars compared with a profit of 201 million dollars a year ago. Revenue fell to 213 million dollars from 307 million dollars a year earlier. CEO said the company supports the decision by a federal agency to put on hold a potential government loan of 765 million dollars in order to help the firm produce drug ingredients pending an investigation into eventual wrongdoings.

Liberty Global (LBTYA), one of the world's leading converged video, broadband and communication companies, agreed to buy telecoms Swiss company Sunrise communications for 110 Swiss francs per share. The offer represents a total enterprise value of 6.8 billion Swiss francs.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

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. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.