Meanwhile, OPEC+ members meet to discuss oil production cuts.
Tech Stocks Gain Ground As Treasury Yields Decline
S&P 500 futures are gaining ground in premarket trading as traders are optimistic on Biden’s infrastructure plan.
Interestingly, Treasury yields are moving lower despite the announcement of a roughly $2 trillion plan, which is bullish for tech stocks. Apple, Facebook, Microsoft and other leading tech shares are gaining ground in premarket trading.
Meanwhile, the U.S. dollar pulls back against a broad basket of currencies which is bullish for precious metals which have a chance to continue their rebound. Gold managed to settle above the $1700 level and is moving towards the resistance at the 20 EMA at $1730, providing additional support to shares of gold miners.
WTI Oil Tries To Settle Below The $60 Level As Traders Wait For Results Of OPEC+ Meeting
Today, OPEC+ members meet virtually to discuss the current situation in the oil market. Europe is facing a third wave of the virus, and European countries have already extended virus-related restrictions until late April. The situation in Brazil and India is also moving in the wrong direction, so oil demand recovery remains fragile.
According to recent reports, OPEC+ will choose between keeping current production cuts in place and gradually increasing production. Obviously, the market would like to see the extension of current production cuts.
At the same time, it remains to be seen whether the potential gradual increase of production levels will put additional pressure on the oil market.
Initial Jobless Claims Increase To 719,000
The U.S. has just provided Initial Jobless Claims and Continuing Jobless Claims reports.
The Initial Jobless Claims report indicated that 719,000 Americans filed for unemployment benefits in a week compared to analyst consensus of 680,000. The previous report was revised from 684,000 to 658,000. Continuing Jobless Claims declined from 3.84 million (revised from 3.87 million) to 3.79 million, mostly in line with the analyst consensus.
The U.S. will soon release the final reading of Manufacturing PMI report which is projected to show that Manufacturing PMI grew from 58.6 to 59. Unless the report is much worse than the analyst estimate, it should not have a major impact on today’s trading.