Nasdaq futures point to a strong start recovering almost all of yesterday’s losses after yesetrday’s drop on a day that the Federal Reserve cut the interest rates by 50 basis points. Fed proceeded with the emergency rate cut in an attempt to offset the coronavirus impact, even the U.S. fundamentals remain strong.
Futures also helped by the Biden Super Tuesday win that reopens his path to the Democratic presidential nomination. The Dow Jones futures are 2.07% higher at 26415, while the Nasdaq futures are 1.89% higher at 8856. The S&P 500 futures are 0.40% higher at 3080, and returned above the 200-day moving average.
On the data front the United States ADP Employment Change came in at 183K topping forecasts of 170K in February.
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European Indices Extend Gains
European indices extended gains by midday amid monetary stimulus speculation. The European Monetary Union Markit PMI Composite was unchanged at 51.6 in line with forecasts in February. The Services PMI came in at 52.6, below the forecasts of 52.8. The DAX Index is 0.95% higher at 12,088. German service PMI eased to 52.5 from 54.2 in January. The CAC 40 is 0.89% higher at 5,443 after the France PMI Composite came in at 52 above forecasts of 51.9 in February. FTSE 100 is 1.31% higher at 6,805 while the FTSE Mib index is 0.91% higher at 21949.
Cryptocurrencies Turn Lower
Cryptocurrencies gave up early gains by midday, the bitcoin (BTCUSD) is 0.17% lower at $8740. Litecoin (LTCUSD) is 1.33% lower at 60.14. Ripple is 0.55% lower at 0.2324 while Ethereum is 0.10% lower at 223.24.
Oil Trades Higher Gold Unchanged
Crude oil price trades higher today amid increased expectations of OPEC+ production cuts as Russia is ready to cooperate. The WTI is 1.59% higher at $47.97. Brent crude oil is 1.53% higher at $52.59.
Gold is trading almost unchanged at 1639 after yesterday’s interest rate cut rally. Silver price is 0.45% lower at $17.12.
In forex markets, EURUSD is 0.42% lower at 1.1122 amid speculation of ECB monetary stimulus. AUSDUSD is 0.42% higher at 0.6618 after the RBA cut interest rates by 25 basis point to 0.50%. The US Dollar is higher against the Japanese yen and the USDJPY is 0.41% higher at 107.53. EUR to GBP is 0.40% lower at 0.8679 after the pair rejected fot third time at the 200-day moving average.
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