US Futures red, watch DELL, VMW, AMZN, GOOGL
Jean-Christophe Rolland June 24, 2020 12:53 PM
The S&P 500 Futures are drawing a consolidation after the Nasdaq 100 recorded another historical high on Tuesday.
The S&P 500 Futures are drawing a consolidation after the Nasdaq 100 recorded another historical high on Tuesday. The Office Of The United States Trade Representative released a notice stating the U.S. is weighing 3.1 billion dollars additional tariffs on EU and UK imports linked to the Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute.
Later today, the U.S. Federal Housing Finance Agency will post its house price index for April (-0.4% on month expected).
European indices are deeply in the red. On the statistical front, in Germany, the IFO business climate index came out at 86.2 in June, compared to 79.7 in May (revised from 79.5) and 85.0 expected. The Current Conditions sub-index came out at 81.3, compared to 78.9 in the previous month and 84.0 expected. The outlook sub-index stood at 91.4, compared to 80.5 a month earlier (revised from 80.1) and 87.0 expected. In France, the Business Climate Indicator for the manufacturing sector was 77 in June compared to 79 expected and 71 the previous month (revised from 70). For its part, the business climate index as a whole stood at 78 compared to 60 in May (revised from 59) and 72 expected.
Asian indices ended mixed. The Hong Kong HSI and the Japanese Nikkei indices ended lower while the Australian ASX 200 and the Mainland China Index CSI 300 both gained some ground.
WTI Crude Oil Futures are easing. The American Petroleum Institute (API) reported that U.S. crude oil stockpile built 1.7M barrels for week ended June 19. Later today, EIA will release crude oil inventories data for last week.
Gold gains ground, close from a 8-year high, on jumping COVID-19 global cases.
Gold rose 6.97 dollars (+0.39%) to 1775.39 dollars.
Risk currencies consolidate on reports that the US may target new tariffs on EU and UK goods.
EUR/USD fell 7pips to 1.1301 while GBP/USD declined 4pips to 1.2516.
US Equity Snapshot
Dell Technologies (DELL), a technology company, is considering options for its 50 billion dollars stake in information technology company VMware (VMW), including a spinoff or a sale of the stake, or buying the minority stake of VMware that it doesn't already own, reported the Wall Street Journal citing people familiar with the matter.
Amazon.com's (AMZN), the e-commerce giant, price target was raised to 3050 dollars from 2750 dollars by Wedbush.
Alphabet's (GOOGl), Google parent company, price target was raised to 1775 dollars from 1425 dollars by Goldman Sachs.
T-Mobile US (TMUS) priced public offering shares at 103 dollars each, as part of Softbank's sale of its US mobile company shares.
Carnival's (CCL), an international cruise line, credit rating was downgraded to "BB-", a junk rating, from "BBB-" at S&P Global Ratings. The rating agency stated: "we believe the cruise industry may face an extended period of weak demand that will cause global cruise operator Carnival Corp.'s credit measures to remain very weak through at least 2021 as it implements a phased resumption of its cruises and given incremental debt raises to bolster its liquidity while its operations remain suspended."
Norwegian Cruise Line (NCLH), the cruise company, was downgraded to "equal-weight" from "overweight" at Barclays.
Source : TradingVIEW, Gain Capital
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.