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.
Open account
☰
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.
Open account
✖

US open Futures rise after jobs recovery strengthens

Article By: ,  Senior Market Analyst
July 2, 2021 10:15 AM

US futures

Dow futures +0.27% at 34700

S&P futures +0.3% at 4333

Nasdaq futures +0.6% at 14650

In Europe

FTSE +0.1% at 7130

Dax +0.4% at 15660

Euro Stoxx +0.18% at 4087

Learn more about trading indices

S&P 500 hits fresh record high

The closely watched US non-farm payrolls revealed that 850,000 jobs were created in June, beating missing forecasts of 700k. The stronger than expected result comes after two straight months of forecast missing prints.

The unemployment rate unexpectedly rose to 5.9% in June, up from 5.8% in the previous month and worse and higher than the 5.7% expected. This might seem like bad news but it does mean that more people are returning to the labour market which is also good news given that vacacines are at a record high.

Meanwhile average earnings rose 3.6% YoY, UP from 1.9% in May and inline with forecasts. On a monthly basis earnings unexpectedly fell.

The data comes as consumer prices rise to historically high levels, but the Fed has made it clear that it will not start tightening monetary policy until the jobs marker shows substantial strength.

Today’s numbers indicate that the recovery in the labour market is on the right path but not powering ahead too quickly. Given the markets’s reaction of surging stocks and an easing US Dollar the market is not reading this as a report which will prompt the Fed to move sooner to tighten monetary policy. Instead this is a continuation in progress towards the Fed’s goal of full employment.

Where next for the S&P500?

The S&P500 futures charged higher to a fresh all time high of 4327 ahead of the NFP release. The bullish MACD keeps buyers hopeful of further gains. It would take a move below 4200 the ascending trendline and the 50 sma to negate the near-term uptrend. A move below 4140 the June low to see the sellers gain momentum.

FX – USD eases from recent high

The US Dollar is easing back from a 3 month high following the US NFP.

GBP/USD trades firmly sub 1.40 after falling steadily all week. Sterling trades under pressure amid rising Delta variant cases in the UK. Concerns are growing that Freedom Day, the final lifting of covid restrictions could be delayed or watered down as new daily covid cases top 27,000 a level last seen on 29th January.

EUR/USD struck its lowest level since April on US Dollar strength despite strong PPI wholesale inflation data for the bloc. Eurozone PPI rose 1.3% MoM in June, up from 0.9% in May and ahead of 1.2% forecast.

GBP/USD  -0.13% at 1.3744

EUR/USD  -0.23% at 1.1822


Oil holds Thursday’s gains after no OPEC+ deal was agreed

Oil rallied 2.4% on Thursday after the OPEC+ failed to agree to increase oil production. Oil prices are edging mildly lower today but are holding onto the lion’s share of the gains. Oil is set to gain over 1% across the week, the sixth consecutive week of gains.

The United Arab Emirates a key member in the OPEC+ alliance blocked a deal to raise output at the 11th hour. Bitter infighting resulted in the meeting being postponed and cast doubt on whether a deal to boost production can be agreed at all.

Oil prices have surged across the past 6 week, jumping over 10% in June alone. Soaring demand as economies reopen, combined with limited supply amid ongoing OPEC output cuts is keeping the market tight, boosting prices.

US crude trades -0.48% at $74.46

Brent trades -0.43% at $75.35

Learn more about trading oil here.

The complete guide to trading oil markets


Looking ahead

15:00 US Factory orders

18:00 Baker Hughes


How to trade with City Index

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

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


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.

© City Index 2024