Stocks Set To Rebound After Major Sell-OffMeanwhile, oil remains under pressure amid virus worries.
S&P 500 Futures Move Higher But Demand For Safe-Haven Assets Stays Strong
S&P 500 futures are gaining ground in premarket trading as traders look ready to buy stocks after the recent sell-off.
It should be noted that safe-haven assets like U.S. dollar and Treasuries continue to gain ground, which indicates that markets remain worried about the threat posed by the Delta variant of coronavirus.
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The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has recently managed to get above the 93 level which may put some pressure on gold and silver.
Meanwhile, the yield of 10-year Treasuries has declined to the 1.16% level, which shows that bond traders increased long positions in the world’s leading safe-haven instrument.
WTI Oil Failed To Settle Above The $67 Level
WTI oil has recently made an attempt to settle above the $67 level but failed to develop sufficient upside momentum and pulled back towards $66.50.
Yesterday’s trading session was extremely challenging for oil, and it looks that virus worries continue to put pressure on the oil market today.
In other circumstances, successful negotiations between OPEC+ members would have served as a bullish catalyst for oil. However, the market is worried that OPEC+ decided to increase production at a time when demand may fall due to new virus-related restrictions, which may serve as a negative catalyst for oil.
Housing Starts Grew By 6.3% In June
Meanwhile, Housing Starts increased by 6.3% compared to analyst forecast which called for growth of just 0.8%.
Housing market data remains a bit volatile, but it is clear that the housing market is in a healthy condition which is not surprising given the amount of support provided to markets by the Fed.
For a look at all of today’s economic events, check out our economic calendar.