Traders Remain Confident That Inflation Is Under Control
S&P 500 futures gain some ground in premarket trading, and the stock market looks ready to finish the week at all-time high levels.
Yesterday, Producer Prices report indicated that Producer Prices increased by 7.8% year-over-year in July. Producer Prices continue to grow, but traders remain confident that inflation is under control.
Treasury yields have recently made an attempt to move higher but lost momentum and pulled back. The yield of 10-year Treasuries remains below the 50 EMA at 1.3615%. It remains to be seen whether the stock market will be sensitive to changes in yields, as stock traders remain very bullish and look ready to ignore negative developments.
Today, traders will have a chance to take a look at preliminary reading of Michigan Consumer Sentiment report for August. Analysts expect that Consumer Sentiment remained unchanged at 81.2.
Precious Metals Rebound As U.S. Dollar Moves Lower
U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, failed to settle above the 93 level and is testing the nearest support at 92.80.
Dollar’s weakness provided support to gold and silver which are currently moving higher. Gold managed to get above the resistance level at $1750 and is heading towards the next resistance level at $1775.
This is a positive development for gold mining bulls as gold mining stocks remain close to multi-week lows. Today, this market segment will have a chance to rebound.
WTI Oil Stays Near $69 As Traders Do Not Believe That OPEC Will Boost Production
Recent reports indicated that U.S. was trying to persuade its allies in OPEC to boost oil production in order to put some pressure on gasoline prices. However, these reports had minimal impact on the market, and WTI oil continues to trade near the $69 level.
The oil price managed to recover from recent sell-off despite worries about the new wave of coronavirus, and it looks that the market mood remains bullish, which is positive for oil-related stocks.
For a look at all of today’s economic events, check out our economic calendar.