S&P 500 Futures Move Higher But Demand For Safe-Haven Assets Stays Strong
S&P 500 futures are gaining ground in premarket trading as traders look ready to buy stocks after the recent sell-off.
It should be noted that safe-haven assets like U.S. dollar and Treasuries continue to gain ground, which indicates that markets remain worried about the threat posed by the Delta variant of coronavirus.
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has recently managed to get above the 93 level which may put some pressure on gold and silver.
Meanwhile, the yield of 10-year Treasuries has declined to the 1.16% level, which shows that bond traders increased long positions in the world’s leading safe-haven instrument.
WTI Oil Failed To Settle Above The $67 Level
WTI oil has recently made an attempt to settle above the $67 level but failed to develop sufficient upside momentum and pulled back towards $66.50.
Yesterday’s trading session was extremely challenging for oil, and it looks that virus worries continue to put pressure on the oil market today.
In other circumstances, successful negotiations between OPEC+ members would have served as a bullish catalyst for oil. However, the market is worried that OPEC+ decided to increase production at a time when demand may fall due to new virus-related restrictions, which may serve as a negative catalyst for oil.
Housing Starts Grew By 6.3% In June
Meanwhile, Housing Starts increased by 6.3% compared to analyst forecast which called for growth of just 0.8%.
Housing market data remains a bit volatile, but it is clear that the housing market is in a healthy condition which is not surprising given the amount of support provided to markets by the Fed.
For a look at all of today’s economic events, check out our economic calendar.