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 point lower on inflation fears Boeing slumps

Article By: ,  Senior Market Analyst
February 22, 2021 8:54 AM

US futures

Dow futures -0.5% at 31270

S&P futures -0.7% at 3877

Nasdaq futures -1.4% at 13388

In Europe

FTSE -0.4% at 6595

Dax -0.4% at 13930

Euro Stoxx -0.6% at 3692

Learn more about trading indices


Reflation trade

The reflation trade is gaining traction with base metal prices surging on expectations of strong global economic recovery fueling demand.

Copper futures broke above the key $9000 resistance for the first time in almost a decade. Futures of iron, which is the principal ingredient in steel making hit a three-week high and now trades less than 5% off the 10 year high reached in January.

The weaker US Dollar is adding support to the base metals, a trend which is being underpinned by the prospect of the Biden administration’s $1.9 trillion package. The bill could be voted on in the House of Representative as soon as Friday.

Everything you need to know about trading copper.


Stocks look to pick up after yesterday’s sell off

US stocks are set to open lower as rising bond yields and the prospect of higher borrowing costs takes the shine off stocks.

The Nasdaq is a standout loser as the rotation out of growth gains pace.

Berkshire Hathaway reported before the open, whilst earnings from the oil and gas sector will be in focus after the close with Occidental and Williams reporting.

Kohl’s trades9.8% pre-market on reports that a group of activist investors with around a 9.5% stake  were attempting to take control of the department store’s board.


Boeing 777’s grounded on FAA orders

Boeing has called for the grounding of 128 of its 777 planes as US regulators, the FAA, issue an emergency order to inspect Boeing 777’s fitted with Pratt & Whitney engines after a mid flight accident in Denver.

This latest incident comes just weeks after Boeing got the all clear from regulators to start flying its737 MAX planes which had been grounded for 2 years following fatal accidents.

The stock trades -3% pre-market. Even so, the bias remains neutral.


FX – EUR & GBP bounce as US Dollar eases

The US Dollar is on the backfoot despite treasury yields rising. The US Dollar Index (DXY) -0.1% at the time of writing paring earlier gains.

EUR/USD trades higher after German IFO business sentiment data showed that optimism has returned to the German economy. Businesses, like the markets, are looking through the near term problems from lockdown and slow vaccine rollout to focus on the recovery. The IFO index rose to 92.4 in February from 90.3 in January.   

GBP/USD struck a fresh 35 month high of 1.4050 as investors cheer the rapid vaccine rollout and look ahead to a speech by Boris Johnson later today where he will mark out the path to reopening the UK economy.

Analyst Fiona Cincotta looks at the price action of GBP/USD here

GBP/USD trades +0.05% at 1.4020

EUR/USD trades +0.15% at 1.2130


Oil pares some of Friday’s losses

US crude oil prices have started the week firmer as production wells, pipelines and refineries start to return to normal in Texas following last week’s cold snap.   

Separately, according to Bloomberg tensions are once again brewing between Saudi Arabia and Russia ahead of the next OPEC +meeting. Russia is more eager to ramp up production than its peers.

US crude trades +1% at $59.89

Brent trades +0.9% at $62.70

Learn more about trading oil here.

The complete guide to trading oil markets


Looking ahead

It is a quiet start to the week on the US economic calendar. Things start to pick up tomorrow with Fed Chair Jerome Powell beginning his bi-annual two day testimony before Congress which is set to be one biggest events of the week.


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