Crude Oil Drops on Fears of Oversupply from Iran. Gold Reaches Record Top
US equity-futures slipped on Thursday, as investors awaited the release of the American economic data. After the underlying indices did well on Wednesday, contracts on the S&P 500 and Nasdaq 100 decreased. Figures on jobs, personal consumption, and economic growth coming in later on Thursday will help investors to see the bigger picture of the US economy and understand whether monetary stimulus is forthcoming.
European shares edged higher, while investors waited for the crucial US data. Shares on the German DAX dipped, after Bayer, a pharmaceutical company, was hit by a court ruling and consequently shed 4%. The Stoxx 600 index inched 0.1% to 445.76 points, falling slightly short of the record top of 447.15 reached on Tuesday.
Mining stocks in Europe led the markets higher, as metal prices jumped, boosted by worries about supply disruption in Chile, the top producer of copper. Food and beverages stocks checked in the markets’ advance, since they tumbled 0.6% on losses in Tate & Lyte, the British processed food maker.
Chinese stocks and the yuan moved up after the US and China held the first trade talks after Biden’s inauguration. The American and Chinese trade chiefs tried to resolve difficulties, though tension still remains due to fierce competition between the two largest economies.
Oil retreated, because investors fear that Iran will cause oil oversupply, if sanctions on its exports are removed. Bitcoin traded below $40,000. Gold reached the highest level in more than four months.
These are the main moves in the markets that investors should watch on Thursday:
The Stoxx Europe 600 added 0.1% during the early European session. The German DAX declined 0.4%. The FTSE retreated 0.14%. The French CAC jumped 0.44%. S&P Futures 500 sank 0.2%. Nasdaq 100 futures receded 0.5%. The MSCI Asia Pacific Index lost 0.2%. The MSCI Emerging Markets Index was little changed on Thursday.
The US dollar Spot Index gave up 0.1%. The euro traded unchanged at $1.2198. The Japanese yen was little changed at 109.16 per dollar. The British pound traded at $1.4127, virtually unchanged. The offshore yuan jumped 0.2% to 6.3717 per dollar.
WTI lost 0.73% to trade at $65.73 per barrel. Brent Crude gave up 0.83% to $68.30 per barrel. Gold declined 0.1% to $1,894 per ounce. Silver retreated 0.4% to $27.77 per ounce. Platinum slipped 0.13% to $1,194.61 per ounce. Copper gained 0.57% to $455.55.
The yield on 10-year Treasuries climbed one basis point to 1.59%. Germany’s 10-year yield was little changed at -0.20%. Britain’s 10-year yield soared two basis points to 0.77%.
These are the events traders should follow on Thursday:
U.S. initial jobless claims, GDP, durable goods, pending home sales and personal consumption are unveiled later today.
Have a productive trading day!