US open: Futures point to a mixed start amid inflation caution

US stocks are heading for a mixed start in what is expected to be a quiet session. Caution dominates ahead of Thursday's CPI reading.

USA (2)

US futures

Dow futures -0.02% at 34610

S&P futures +0.2% at 4236

Nasdaq futures +0.66% at 13890

In Europe

FTSE +0.3% at 7103

Dax +0.03% at 15694

Euro Stoxx +0.3% at 4110

Learn more about trading indices

Stocks mixed after Fastly outage, CPI in focus

US futures are set for a mixed start in what is expected to be a subdued session. Investors remain firmly fixated on Thursday’s inflation data. After the goldilocks jobs report on Friday, the rally has faded and concerns are starting to creep in over where inflation might be heading and what the Fed may do about it.

The tight trading ranges seen so far this month reflect the cautious mood in the market ahead of the inflation numbers. CPI is expected to continue climbing to 4.7% MoM in May.

Such as elevated figure will test the Fed’s resolve. Whilst the Fed reassure that this spike in inflation is temporary, policy makers will need to be out in their droves to calm the market. Delaying action or even inaction could cause economic disruption that the markets fear.

In corporate news Fastly will be in the spotlight after experiencing technical issues which are suspected to be behind an outage hitting global news websites such as FT, Bloomberg and the New York Times.


Where next for the Dow Jones?

The Dow Jones closed 0.3% lower on Monday and the futures are trading a few ticks lower today. However, the broad uptrend remains intact, with the index trading above its ascending trendline dating back to early May, on the 4 hour chart.  The overnight swing low found support on the trendline at 34450. Although a move below 34200 is needed to negate the near-term uptrend. On the upside, buyers could target 34850 the June high, before 35000 comes back into sight.

FX – USD edges higher, EUR digests mixed bag of data

The US Dollar advancing in quiet trade as it recovers from a two day selloff following the weaker than expected non farm payroll report. The softer number took some pressure off the Fed to taper support. Attention is now on Thursday’s CPI reading.

EUR/USD trades range bound as investors digest a mixed bag on the data front. Eurozone Q1 GDP was upwardly revised contracting -0.3% in the first three months of the year, less than the -0.6% from the second reading. However, German industrial production also unexpectedly declined 1% in April, down from 2.2% increase in March but well short of the 0.5% rise forecast.

GBP/USD  -0.2% at 1.4145

EUR/USD  -0.1% at 1.2178


Oil eases on demand concerns

Oil prices are extending losses for a second straight session as investors remain caught up on demand outlook concerns. Data yesterday revealed that Chinese oil imports dropped -14.6% YoY in May, to a 5 month low unnerving the markets.

Both benchmarks are trading around 1% lower, although the longer term bullish uptrend remains intact. Oil prices have rallied over 40% this year on expectations of strong demand in the second half of the year.

API crude stockpile data is due later.

US crude trades -0.1% at $68.51

Brent trades -0.1% at $70.72

Learn more about trading oil here.

The complete guide to trading oil markets


Looking ahead

15:00 JOLTS job openings

21:30 API Crude Oil Stockpile Data


How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.


More from Indices

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.