Equity Futures Edge Higher on Optimism over Reopening the Economy

Equities

Major US stock-index futures bounced off the lows and rallied higher as optimism over the reopening of the economy outweighed the US-China tensions. Investors are looking forward to the full reopening of the economy, and bringing life back to normal as the numbers of new cases, and hospitalized cases continued to drop. Stock benchmarks kicked off the week on a weaker note on woes over tension between the world's largest economies. However, they managed to recover as risk sentiment improved. The Dow Jones Industrial Average futures rose to 23923, the S&P500 futures rallied to 2863, and Nasdaq futures advanced to 8910.

AUD

The Australian dollar inched slightly higher against rivals following the Reserve Bank of Australia interest rate decision. The board left interest rates unchanged at 0.25% as widely expected and stated that rates would remain at their low levels until inflation and employment reach goals. On the other hand, the bank scaled back the frequency and size of bond purchases. The AUDUSD edged higher to $0.6462, and the EURAUD drifted lower to 1.6875.

USD

The dollar index, which measures the greenback against a basket of major currencies, rebounded off the lows, putting an end to a daily-losses streak, to close at 99.58 supported by demand for safety. The rising tensions between China and the United States over COVID19 boosted demand for safe assets during the first trading sessions of the week. The risk sentiment improved, and stocks rallied, but the dollar was able to protect gains. The EURUSD declined to $1.0885, and the GBPUSD eased to $1.2405.

Gold

Gold prices edged lower as investors rushed to riskier assets. The price of a gold ounce fell to $1689, the price of a silver ounce tumbled to $14.72, and palladium futures plunged to $1825.

Oil

Oil prices resumed moving higher as investors expected recovery in demand as countries ease the lockdown measures. The West Texas Intermediate crude June delivery rose to $22.76, and Brent blend July delivery advanced to $29.23. Market participants are looking forward to the weekly US crude oil stock by the American Petroleum Institute later today.

Major Economic Events

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