Premarket: S&P 500 Futures Rally On Better U.S. Retail Sales
S&P 500 futures trading 1.26% higher at 3,100 after the Federal Reserve announced that it would buy corporate bonds above the exchange-traded funds (ETF’s) it is already purchasing, in an attempt to support markets and ease credit conditions. Stock markets also getting a boost amid speculation of a $1 trillion infrastructure package from the U.S. administration to support the coronavirus battered economy.
U.S. Retail Sales Beat Estimates
U.S. Retail Sales increased by 17.7% in May to $485.5 billion beating the forecasts for an 8% rise, the Retail Sales excluding Autos reported at 12.4%, also beating the expectations of 5.5%.
Investors await the Fed Chairman Jerome Powell testimony before the Congress banking committee later on the day. The Federal Reserve projects that economy will contract by 6.5% in 2020, while in 2021 will grow by 5% and in 2022 it will see the growth of 3.5%.
The S&P 500 futures are 2.16% higher at 3,128. The Dow Jones futures are 2.55% higher at 26,409, while the Nasdaq futures are 1.73% higher at 9,958.
In Europe, Germany’s ZEW survey improves, while the current assessment remains bleak. The current situation rose from -93.5 to -83.1 better than expectations of -84. The Economic Sentiment came in at 63.4 above the forecasts of 60 in June. The Dax index is 3.17% higher at 12,288. The CAC 40 index is 2.71% higher at 4,946.
In London, the FTSE 100 is 2.63% higher at 6,224. The UK unemployment rate held steady between February and April at 3.9%, below the expectations for a jump to 4.5%. The claimant count rose by 528,900, which was above the 370,000 increase expected. Average earnings excluding bonuses grew 1.7% in April, down from 2.7% in March but below the expectations for a 1.9% increase.