S&P 500 futures trade higher for the third consecutive session as the optimism around the reopening of the economies boosts investor sentiment. Traders ignored the rising tensions between the USA and China after President Trump said that he is preparing to take measures against China over its plan to impose new security laws in Hong Kong.
Traders await later today the May Richmond Fed survey and the Fed’s Beige Book ahead of next month’s FOMC meeting.
Yesterday, the Conference Board Consumer Confidence Index (CBCI) surprised positive as it rose to 86.6 in May from 85.7 in April. The Present Situation Index dropped from 73 to 71.1, while the Expectations Index rose from 94.3 to 96.9. The United States Dallas Fed Manufacturing Business Index came in at -49.2 in May; the previous month reading was at -73.7.
The United States Case-Shiller Home Price Index came in at 3.9%, beating the expectations of 3.4% in March. The Housing Price Index registered in at 0.1%, below the market consensus of 0.3%. The Chicago Fed National Activity Index plunged to -16.74 in April from previous -4.19.
The futures in Wall Street trade higher in the premarket. S&P 500 futures are 1.11% higher at 3,027, while the Dow Jones futures are 1.41% higher at 25,356. Nasdaq futures are 0.25% higher at 9,432.
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European Markets Rally
The European Commission announced earlier today a plan for a 750 billion euro coronavirus relief fund. France and Germany argue on issuing mutual EU debt, while nations including Sweden and Austria are in favour of issuing loans. The critical meeting will be on June 18, where leaders from the 27 EU member states will meet to finalize the proposal details of the fund.
CAC 40 is 2.11% higher at 4,703 while the Dax index is 2.03% higher at 11,738. FTSE 100 is 1.54% higher at 6,160.
Crude Oil Price Retreat From 10-Month Highs
WTI crude oil futures trade 1.37% lower at 33.87 while the Brent crude oil is 1.59% lower at $35.92. The Gold price is under selling pressure as investors shift their attention from safe-haven assets, as of writing is 0.55% lower at 1,700, while the silver price is 0.42% lower at 16.99.