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: Stocks lower, oil rallies, Boeing crashes

Article By: ,  Senior Market Analyst
March 21, 2022 12:49 PM

US futures

Dow futures -0.25% at 34650

S&P futures -0.07% at 4450

Nasdaq futures -0.19% at 14390

In Europe

FTSE +0.4% at 7435

Dax +0.2% at 14400

Euro Stoxx  -0.09% at 3900

Learn more about trading indices

Risk aversion pulls on stocks, Fed Powell to speak

US stocks are pointing to a mildly lower start on Monday, with the Ukraine crisis in focus and as oil prices jump higher.

Ukraine defied a Russian demand for its forces to surrender in Mariupol, and peace talks continued without any tangible breakthrough. Hopes of a peace deal boosted market sentiment last week, and shares experienced their best weekly run since November. However, that optimism is fading as days progress and bombing in Ukraine intensifies.

The economic calendar is light today. Attention is on Federal Reserve Chair Jerome Powell, who is due to speak later. His speech comes after Atlanta’s Federal Reserve Bank President Raphael Bostic said that he has included in 6 rate hikes this year, saying that bringing inflation under control was a top priority.

In corporate news:

Boeing flies 6% lower premarket after a 737 crashed in China, killing all 132 people on board. This was not one of the trouble 737 MAX range. The plane involved in the crash has a good safety record, unlike the MAX.

Where next for the S&P500?

The S&P extended its rebound from 4140 in mid-March, retaking some key points of resistance and the 50 sma. The rally has run into resistance at 4575 last week’s high, although the RSI suggests that there is more upside to be had. Buyers will want to see a move over 4475 in order to open the door to 4530 a level which has offered support and resistance on several occasions across the past 6 months, with a break over here exposing the 100 sma at 4550. On the flip side, it would take a move below 4400 to negate the near-term uptrend. A move below the 4280-60 zone could see sellers gain traction.

FX markets USD rises, EUR pares losses

USD is heading higher, with the focus still squarely on the Ukraine crisis. Federal Reserve Chair Powell is also due to speak later today and could fresh direction to the market. The Fed hikes interest rates 25 basis points last week and pointed to six more interest rate rises this year, although the US Dollar index fell across last week in a buy the rumor sell the fact move.

EURUSD is falling despite upbeat comments from ECB President Christine Lagarde who said that she doesn’t see signs of stagflation for now. Her comments come as inflation is expected to continue surging and growth slow following the Russian invasion. Lagarde said even in the bleakest scenario she still sees growth of 2.3%

GBP/USD  -0.29% at 1.3137

EUR/USD  -0.1% at 1.1040

Oil rallies on EU sanction concerns

Oil prices are on the rise, paring losses from the previous week as supply concerns return. With few signs of the conflict in Ukraine easing, fears are growing that the EU will consider sanctioning Russian oil. EU leaders and President Biden will speak to discuss a tougher Western response to the Russian war.

Separately, a Houthis attack on Saudi oil site, causing as temporary decline in output adding jitters to an already nervous market.

Separately the latest OPEC report revealed that producers are still failing to meet their output quota, which raises the question whether it is worth lifting output further if the production quotas can be reached.

WTI crude trades +3.5% at $107.21

Brent trades +3.4% at $110.21

Learn more about trading oil here.

Looking ahead

N/A

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