US benchmarks to begin little changed
Indices bounce after 60 pt decline for US500
Boeing shares called to open lower following tehran crash
Those who have not checked the US indices for the last 18 hour may think little has changed, with the major benchmarks trading not far from the levels seen on last night’s cash close. Shortly after the opening bell however, it is important to look at the price action seen out of hours where the markets swooned following Iran retaliatory strikes against the US, before recouping the losses in their entirety.
US indices are back in the green after some large selling overnight. Source: xStation
This remarkable rebound could be attributed to a feeling that Iran’s retaliation seems to have been at the milder end of the scale and all eyes will now be on US president Donald Trump who is set to give a press conference at 4PM (GMT). The recovery in markets and corresponding drop in both the Oil price and Gold suggests that investors believe the worst of this could be behind them. As always though, Trump has the potential to be extremely unpredictable and until he states that the US won’t escalate this further there is still scope for downside shocks.
The US500 has completed a round-trip from the sharp drop seen on news of Iran’s retaliation and traders will now be watching closely to see if price can get back above 3247 and have another tilt at 3263. Source: xStation
On the data front the ADP employment change comfortably beat forecasts with a sizable upwards revision to the prior reading to boot and this will likely serve to ramp up expectations ahead of Friday’s NFP report.
One stock gaining attention on the open is Boeing, with the Aerospace firm starting lower by around 2% after one of its planes crashed in Tehran in an incident unrelated to the recent geopolitical tensions. It is also worth noting that Boeing has a sizable weighting on the US30 (circa 8%) and this explains why the index is lagging its peers somewhat.
Boeing shares have begun a little lower after the crash in Tehran, with the price holding below the 100 SMA on W1. The region from 290-320 could be seen as highly significant longer term. Source: xStation
This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.