US futures
Dow Futures +0.08% 33593
S&P Futures +0.25% 4133
Nasdaq Futures +0.3% 13183
in Europe
FTSE +0.18% to 7685
Dax +0.96% at 15715
- Focus on US Factory Orders and JOLTS Jobs
- Oil prices boost profits
- GBP rises with BoE Hue Pill to speak
JOLTS vacancies and order deadlines for US factories
U.S. stocks start slightly higher after yesterday’s mixed trading as investors continue to digest higher oil prices that could impact the Fed’s interest rate performance and hope for more data I’m here.
Rising oil prices have made the Fed’s job of containing inflation more complicated. This could ultimately mean that interest rates will rise in the long term. That said, the market is pricing in two rate cuts for him by the end of the year. With OPEC rate cuts, the market has a 58% chance of him pricing in a rate hike in May.
Going forward, US factory orders are expected to decline -0.5% in February from -1.5% in January. The data comes after the US manufacturing PMI plunged to its lowest level in almost two years.
US JOLTS vacancies are also in the spotlight and are expected to drop slightly to 10.4 million from 10.8 million. The data is consistent with a tight labor market and outperforms Frida’s non-farm payroll report.
company news
Virgin Orbit plunged 24% pre-market after the cash-strapped space launch company filed for Chapter 11 bankruptcy.
Walmart will be in the spotlight as the two-day investor-analyst conference begins. This comes amid reports that the retail giant plans to cut 2,000 of his jobs.
Tesla is up 0.8%, up 35% year-on-year after yesterday’s big loss and the EV maker selling 88,869 Chinese-made cars in March.
What’s next for the S&P?
The S&P 500 is approaching the key resistance level of December’s high of 4145. A break here is needed to target the 2023 high of 4200. On the other hand, a break below 50 sma at 4030 opens the door to 3980, 100 sma and rising trendline resistance. A break below it will reverse the short-term uptrend.
FX Market – US Dollar Falling, British Pound Rising
USD teeth The market bets that the Fed’s rate hike cycle is nearing its end, leading to a drop and widening losses from yesterday. US data and Fed speakers provide further clues.
EUR/USD is Eurozone PPI leveled off around 1.09 after a more than expected fall from 15% in January to 13.2% y/y in February. Eurozone consumer inflation expectations fell to his one-year low of 4.6%, and three years later inflation fell to his 2.4%.
GBP/USD is on the rise, buoyed by a 1% rise from yesterday and divergence between the BoE and the Fed. April is also typically a strong month for cable given that it has been up for eight of the last decade. The BoE chief and his economist Huw Pill will speak today.
EUR/USD +0.08% at 1.09
GBP/USD +0.5% of 1.2482
Oil Extends Gain
Oil prices continue to rise after the OPEC+ production cuts were announced over the weekend. Crude oil prices are up more than 7% this week and are up 16% over the past 10 days.
UBS expects Brent to rise to $100 a barrel by the end of next quarter. Goldman Sachs also raised its crude oil price forecast.
WTI Crude Oil Trades +0.8% to $81.05
Brent trades +0.8% at $85.44
looking ahead
15:00 US factory order
15:00 Recruitment
