US Stock Futures Rise on Prospects of Re-opening the Economy

US Stock Futures Rise on Prospects of Re-opening the Economy


Major US stock index futures edged higher for the second consecutive day in hopes of reopening the economy as soon as possible. The coronavirus-related hospitalization rate has dropped for the 14th day in New York, which was the epicenter of the virus in the United States. The state governor Andrew Cuomo announced that the state plans to reopen the economy in phases. Meanwhile, Georgia already opened parts of its economy on Friday. The actions taken towards bringing life back to normal should spur risk sentiment. During the Asian session, the Dow Jones Industrial Average futures rose to 23978, the S&P500 futures ascended to 2864, and Nasdaq futures advanced to 8896.


The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 99.85 amid enhanced risk sentiment. As world leaders look forward to reopening their economies, the demand for safety lessened, but woes of sharp recession capped losses. Market participants are looking forward to a series of economic indicators, among them the preliminary reading of the first-quarter GDP in the United States, and the outcome of the Federal Reserve and European Central bank monetary policy meetings. The EURUSD rose to $1.0858, the GBPUSD inched higher to $1.2453, and the AUDUSD rallied to a seven-week high of $0.6469.


Gold prices eased amid improved risk sentiment but fears of recession capped losses of safety assets. The price of a gold ounce declined to $1713, the price of a silver ounce held steady near $15.20, and palladium futures bounced up to $2029.


Oil prices kicked off the week on a decline amid woes over storage capacity. The US oil inventories rose to 518.6 million barrels till April 17, closing into a record high of 535 million barrels. The West Texas Intermediate futures May delivery declined below 0, marking the first drop below 0 in history as traders paid to take oil off their hands. Market participants are afraid that the June contract could have a similar scenario as oil storage is filling up quickly worldwide as covid19 continues to suspended economic activity and lessen oil demand levels. However, prospects of reopening the economy, agreed OPEC+ cuts, and other output reductions could support the prices. During the Asian session, the West Texas Intermediate crude June contract dipped to $14.26, and the Brent oil June contract fell to $19.99.

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