US Indices Rally as Oil Rebounds

Equities

Major US stock index futures bounced to recover partially from significant losses incurred earlier this week as oil prices rebounded enhanced risk sentiment. Also, reports saying that China is planning to buy more than 30 million tons of crops for state stockpiles to avoid any problems arising from supply chain disruption supported sentiment. Market participants are looking forward to the weekly jobless claims, and manufacturing and services PMI, to further weigh the impact of the coronavirus on the US economy. The Dow Jones Industrial Average futures rose to 23493, the S&P500 futures edged higher to 2805, and Nasdaq futures advanced to 8673.

USD

The dollar index, which measures the greenback against a basket of major currencies, inched higher for the third consecutive day to 100.50 as indicators continued to show the size of the impact of the virus on rival economies. Market participants are awaiting a series of economic indicators to be published later today, among them manufacturing and services PMI from the Eurozone, United Kingdom, and the United States, and the US weekly jobless claims. The EURUSD drifted lower to $1.0804, the GBPUSD eased to $1.2312, and the USDJPY rose to 107.85.

Gold

Gold prices continued to move higher after notable correction. The spot price of a gold ounce rallied to $1719 supported by further fiscal stimulus from countries around the globe. Also, the price of a silver ounce edged higher to $15.36 recovering previous losses, and palladium futures bounced to $1940 from a one-month low of $1765.

Oil

Oil prices rallied as producers lowered output to offset the drop in demand, aiming at stabilizing the market. Oklahoma's energy regulator stated that companies could shut wells without losing their leases. Moreover, OPEC and its allies are willing to act further if the turmoil continued. On the other hand, the US oil inventories rose by 15.022 million barrels last week. The West Texas Intermediate June contract rose to $16.08, and Brent June contract advanced to $23.21.

Major Economic Events

Disclaimer 

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