Stock Futures Rebound; Dollar Eases on Stimulus Prospects

Equities

Major US stock index futures kicked off the week on a positive note relative to last week's performance. The U.S. House of Representatives passed a $1.9 trillion coronavirus relief package. Now, the focus shifts to the Senate voting on the bill. The market reacted positively to this development during the first trading hours of the week. On the other hand, the US yields eased well from their tops after putting equity markets under pressure last week. Another positive headline, the Center for Disease Control and Prevention approved Johnson and Johnson Covid-19 single-shot vaccine for widespread use, while COVID19 curves continued to normalize. The Dow Jones Industrial Average futures rose to 31184, the S&P500 futures rallied to 3848, and Nasdaq futures recovered to 13131.

USD

The dollar index which measures the greenback against a basket of major currencies drifted lower to 90.68, surrendering partial gains achieved late last week. The solid rally in Treasury yields and strong economic data lifted the dollar against rivals. However, the yields retreated a little, and the US House of Representatives passed Biden's $1.9 trillion stimulus plan with $1400 cheques, which would impose pressure on the dollar. The EURUSD rebounded to $1.2102, the GBPUSD resumed uptrend rising to $1.3998, and the AUDUSD rallied to $0.7773.

Metals

Precious metals prices rebounded significantly after their sharp drop late last week. The rising US yields and dollar weighed on the metals, driving gold to its lowest price since June 2020. Currently, the price of a gold ounce rose to $1758, up almost 2.5% from Friday's low. The price of a silver ounce edged higher to $27.08, palladium futures rose to $2339, and platinum bounced off $1170 to $1226.

Oil

Oil prices started the week on a strong note with investors' focus shifting to OPEC+ meeting. The news of the US House of Representative trimmed losses incurred on Friday and sparked further optimism over the economic recovery. Meanwhile, the tensions between the US and Iran put upside pressure on prices. The West Texas Intermediate crude April contract rallied to $62.90, and the Brent blend May contract rose to $65.88.

Major Economic Events