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 to quiet start jobless claims beat

Article By: ,  Senior Market Analyst
April 22, 2021 9:42 AM

US futures

Dow futures -0.04% at 34112

S&P futures -0.1% at 4170

Nasdaq futures -0.24% at 13897

In Europe

FTSE +0.08% at 6907

Dax +0.6% at 15285

Euro Stoxx  +0.76% at 4007

Learn more about trading indices


Jobless Claims unexpectedly drop

US stocks are set for a quiet open after a strong rally in the previous session. All three major indices finished the previous session solidly higher.

The improvement in the US labour market which was seen last week continued. 547K Americans made initial claims, down from 586k recorded last week and well below the forecast rise to 617k.

This is the lowest level for jobless claims since the pandemic and reveal that the recovery in the labour market remains on track.

Investors continue to wrestle over the vaccine led recovery and stronger earnings against rising covid cases particularly in India and Japan. Cases in India breached 300,000 a new grime global milestone.

Airlines will be in focus after results were not as bad as feared. Strength of demand for airline shares could provide clues as to the strength of the reopening trade.

Jobless claims are by far the most important US macro data to be released this week, a week that has been dominated by earnings.


US pledge on Earth Day

President Biden has pledged to cut the carbon dioxide emissions by 50% by the end of the decade compared to 2005 levels.

The pledge comes as the US looks to re-establish itself as a leader of the environmental agenda, after years of falling behind with Trump.

The new targets mean an accelerated move away from combustion engines in transportation. EV’s will be increasingly more in focus. Elsewhere, companies which are reducing their carbon foot print will be better positioned to respond to climate change risks and tightening regulation going forward.

Where next for the Dow Jones?

The Dow Jones trades above its ascending trend line dating back to early March. It trades above its 20 & 50 EMA on the 4 hour chart and it hovering around its all time high.

The 20 EMA & 50 EMA are both pointing marginally higher as is the RSI suggesting that a move higher could be the path of least resistance.

Immediate resistance sits at 342248 the all time high, a move beyond here is needed to move towards 35000 round number.

Support can be seen at 34000 the 20 EMA and round number ahead of 33900 the 50 EMA. A break below 33800 the ascending trendline could sellers gain traction.

FX – ECB keeps policy unchanged, as expected

As expected, the ECB left rates and the PEPP unchanged as expected. With no new economic projections due until June, the ECB announcement has turned into a bit of a non-event.

Attention will now turn to the post meeting press conference with ECB President Christine Lagarde. With the vaccine rollout picking up and business sentiment improving we could hear a slightly more upbeat tone from the central bank President

GBP/USD  -0.3% at 1.3885

EUR/USD +0.08% at 1.2043


Oil extends losses

Oil prices are falling for a third straight session amid an unexpected build in crude stockpiles and as covid cases soar in India and Japan.

EIA data revealed that US crude stockpiles unexpectedly rose in the week April 16, confirming API data from Tuesday.

At the same time covid cases are soaring in India and Japan, the world’s third and fourth largest consumers of oil respectively. More states in India are implementing lockdowns and Tokyo & Osaka are both on the brink of imposing curbs. As a result, the demand outlook for oil has softened hitting sentiment for oil.

US crude trades -0.5% at $61.00

Brent trades -0.5% at $64.43

Learn more about trading oil here.

The complete guide to trading oil markets


Looking ahead

15:00 Existing home sales

15:00 EUR consumer confidence


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