Premarket: S&P 500 Futures Rally Continues On Better US ADP Employment Change

Dow Jones and S&P 500 futures trade higher for one more day signalling a positive opening in the cash market after better than expected US ADP Employment Change figures. Employment in the U.S. private sector dropped by 2,760,000 in May, better than the market forecasts for a drop of 9,000,000. The U.S. MBA Mortgage Applications came in at -3.9% for the week of May 29; the previous reading was at 2.7%. 

Positive macro news from China boosted stocks around the globe. The Caixin Services PMI came in at 55 beating the expectations of 50.3 in May. The services sector activity rose for the first time in four months, while the New orders jumped at the fastest pace in a decade, indicating a sharp recovery in certain parts.

Amazon.com (AMZN) is planning a Summer Sale event that would start on June 22 and is designed to help sellers who have been hurt by the coronavirus crisis and the postponement of Amazon’s annual Prime Day. Ford Motor (F), and General Motors (G.M.), are on watch after reported that May auto sales came in at 12.17 million unit annual sales rate beating the expectations.

Dow Jones futures are 0.88% higher at 25,929, the S&P 500 futures are 0.56% higher at 3,094 while the Nasdaq futures are 0.08% higher at 9,655. 

European Stocks At Three-Month Highs

European stocks continue the trip north amid the reopening optimism and despite grim data from Europe. The European Monetary Union Unemployment Rate came in at 7.3% in April below the expectations of 8.2%. However, the Germany Unemployment Change registered at 238K above the expectations of 200K in June, while the Unemployment Rate came in at 6.3% above the forecasts of 6.2% in May. 

The EMU Producer Price Index came in at -2% below the forecasts of -1.8% in April, while the yearly reading for the Producer Price Index registered in at -4.5% below the expectations of -4%. 

The Dax index is 2.37% higher at 12,307 after the Germany Services PMI came in at 32.6 above expectations of 31.4 in May, the Composite index came in at 32.3, also above the expectations of 31.4.  

The FTSE 100 is 1.25% higher at 6,297 after the United Kingdom Services PMI came in at 29, topping the expectations of 28 in May as the downturn in services sector continues amid the coronavirus crisis.

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Crude Oil Price Retreat On News of the OPEC Meeting Cancelation 

WTI crude oil futures trade 0.11% lower at 36.78 while the Brent crude oil is 1.02% lower at $39.19 slipping below the 100-day moving average. The Gold price continues the correction amid the rally in risky assets as of writing gold price is 1.20% lower at 1,704, while silver price also trades 2.11% lower at 17.66.

Cryptocurrencies Rebound After Yesterday’s Sharp Losses

Bitcoin is 0.73% lower at 9,595 after the sharp correction yesterday that drove the price from 10,500 mark to 9,300. The Litecoin (LTCUSD) trades 1.22% higher at 46.59. Ripple (XRPUSD) price is 0.22% higher at 0.2034, while Ethereum (ETHUSD) is 0.65% higher at 239.27. 

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