US Stock-Futures Trim Losses; Dollar Holds Steady

Equities

Major US stock index futures recovered partially during the Asian session from the sharp losses incurred yesterday. The soaring coronavirus cases and waning chances of a deal over the next fiscal stimulus package before the US elections weighed on investors' risk appetite. The Dow Jones Industrial Average futures tumbled to 27257, the lowest since early October, but managed to trim losses and rise to 27713, the S&P500 futures rallied to 3407 after testing a three-week low of 3355, and Nasdaq futures advanced to 11544 from 11341.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, continued to trade in a tight range near 93 awaiting fresh fundamental drivers. Investors are looking forward to the first reading of the 3rd quarter GDP, to be released later this week, to assess the economic recovery. Moreover, any headlines concerning the covid19 relief bill talks could impact the market. On the other hand, the dollar is looking a bit more attractive to investors as economic data show that the US recovery is still stronger than rival economies. The EURUSD dipped to $1.1805, and GBPUSD declined to $1.3002.

Metals

Precious metal prices traded sideways as investors grow cautious ahead of US elections. The price of a gold ounce fluctuated in a tight range between $1890 and $1910, the price of a silver ounce held steady near $24.40, and palladium futures hovered around $2380.

Oil

il prices extended losses as mounting coronavirus cases raised concerns over oil-demand outlook. Investors are afraid that the second wave would force restrictions that can negatively affect the economic activity, hence leading to a drop in oil demand while producers are looking to pump more supply to the markets. The West Texas Intermediate crude December delivery declined to $38.23, and Brent blend December delivery fell to $40.17.

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