US Stock Futures Extend gains on Coronavirus Stimulus Bill

Equities

Major US stock index futures edged higher during the Asian session to add to their gains, as the White House and Senates reached a deal over the massive $2 trillion Coronavirus stimulus bill. The Trump administration and the Federal Reserve took several monetary and fiscal measures to ease the impact of the Coronavirus on the United States. The stock market welcomed some relief where the Dow Jones Industrial Average futures rose to 21183, after having the best day since 1933, the S&P500 futures climbed to 2479, and Nasdaq futures advanced to 7678. In Europe, the scene was similar to the US as the DAX advanced to 10044, and the FTSE recovered to 5557.

USD

The dollar index, which measures the greenback against a basket of major currencies, extended declines to trade at 101.31. The buck was under pressure since the Federal Reserve announced its commitment to buy assets as much as needed to support the economy. The European currencies such as the euro and pound gained as the dollar tumbled where the EURUSD rose to $1.0840, and the GBPUSD soared to $1.1893. Market participants will continue to monitor the Coronavirus outbreak in the United States and Europe and its impacts on the financial markets.

Metals

Gold prices surged as the dollar eased, but the enhanced risk sentiment and the rush for cash trimmed gains. The spot gold rose to $1639, but couldn't hold the gains during the Asian session and tumbled to $1596. The price of a silver ounce fell to $14.18, while palladium futures climbed to $1888.

Oil

Oil prices traded in a tight range awaiting fresh fundamental drivers. The fiscal and monetary measures taken by numerous country supports an upside rally, but the price war between top oil producers is weighing on the prices. The West Texas Intermediate crude futures rose to 25.20, and Brent futures hovered near $28.28. Market participants are looking forward to the US weekly oil report by the US Energy Information Administration later today.

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.