US Stock Futures, Dollar, and Yields Recover on Stimulus Hopes

Equities

Major US stock-index futures trimmed losses on hopes that the US economic stimulus could ease the impact of the coronavirus on the economy.  President Trump will meet officials to discuss payroll tax cuts or relief. Already, Trump signed an $8.3 billion spending bill for prevention efforts and research to produce vaccines at the soonest time possible. The optimism pushed the US stock futures higher where the Dow Jones Industrial Average futures rose to 24764, the S&P500 futures rallied to 2847, and Nasdaq futures advanced to 8276. In Europe, German Dax futures edged higher to 10933, and Italian FTSEMIB bounced off a four-year low of 17577 to 19020.

USD

The dollar index, which measures the greenback against a basket of major currencies inched higher to 96.00 as US Treasury yields recovered slightly on stimulus hopes. The White House will hold a press conference today announcing additional fiscal measures to offset the Coronavirus impact on the economy. The US 10-year yields rose to 0.704%, and the US 30-year yields jumped to 1.149%. The EURUSD dipped to 1.1332, the GBPUSD fell to 1.3016, and the USDJPY ascended to 105.01.

Metals

Gold prices eased as US stocks, yields, and dollar recovered. The price of a gold ounce dropped to $1649, after trading at a seven-year high of $1703 early on Monday. Meanwhile, the price of a silver ounce is hovering above $17, and palladium futures held steady near $2400 .

Oil

Oil prices bounced off their lowest levels since 2016 on enhanced risk sentiment. Oil benchmarks hard their largest drop since 1991 as Saudi Arabia offered significant offers on April crude and planned to increase production as a response to OPEC+ deal failure. Investors are afraid that the emerging tensions between Saudi Arabia and Russia would lead to excess supply in the market. However, the sharp drop triggered some short-covering supported by the rebound in equity markets. The West Texas Intermediate crude futures rose to $33.71, and Brent futures rallied to $37.57.

Major Economic Events

Disclaimer 

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.