Matthew Weller | Apr 01, 2021 12:02AM ET
US stocks are pointing to a mixed start as traders weight the continued strength in treasury bond yields (a close near the current 1.73% level in the benchmark 10-year yield would mark the highest since January 2020) against better-than-expected Chinese manufacturing data overnight (51.9 vs. 51.3 expected).
As of writing, the US ADP employment report had just been released, showing 517k jobs were created, a tick below expectations of a 552k reading after last month’s upwardly-revised 176k figure. This report paints a potentially bullish picture ahead of Friday’s highly-anticipated NFP report .
h2 Biden’s stimulus plan/h2The biggest development yesterday would have been the high-level proposals in U.S. President Joseph Biden’s infrastructure plan. The proposal was expected to come with a $2T price tag to revitalize U.S. transportation infrastructure, water systems, broadband and manufacturing, among other goals. This represents just the first of two infrastructure bills, with a second, more partisan proposal focused on “human infrastructure” (read: education and health care reforms) expected in the coming weeks.
Of course, politicians try to avoid outright deficit spending, so the bill is expected to come with an increase in the corporate tax rate and attempts to close loopholes around “offshoring” corporate profits, a development that may hurt technology companies more than other firms, if passed.
h2 US stocks in focus/h2After seeing a sharp drop in February to test its 200-day EMA, Chewy (CHWY) is poised to open near its 50-day EMA near $91.00. The stock’s RSI indicator has been showing a bullish divergence over the last couple of weeks. This signaling that selling pressure was waning even before Tuesday's strong earnings report, so bulls will want to see if the stock can re-establish a foothold above 91.00 to open the door for a potential continuation back into triple-digit territory in the coming weeks:
The FX market was seeing a relatively quiet end to the quarter, with yesterday’s most notable development being the slight weakness in the Japanese yen.
EUR/USD was stabilizing above its nearly 6-month low at 1.1700, though market’s bias remains to sell any near-term bounces in the pair for now.
GBP/USD was in the middle of this week’s range at 1.3766.
USD/JPY was extending its rally for a 6th straight day to approach the 111.00 handle.
h2 Oil steady ahead of today's big OPEC+ meeting/h2Oil was ticking up in slow trade ahead of today's highly-anticipated OPEC+ meeting. The group is expected to leave production unchanged as COVID variants force lockdowns in a number of major markets. But there is risk of increasing production if the different blocs within the cartel are unable to reach an agreement, as we saw at this time last year.
Attention now turning towards the API stockpiles report.
Original Post
/h2
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.