Sat, Nov 27, 2021 @ 20:59 GMT
HomeContributorsFundamental AnalysisUS Open: Stocks Set to Open Mixed as GDP, Jobless Claims Miss

US Open: Stocks Set to Open Mixed as GDP, Jobless Claims Miss

US stocks set to open mixed after a weaker than expected upward revision to GDP Q2, jobless claim rise. Jackson Hole in focus.

US futures

  • Dow futures +0.04% at 35417
  • S&P futures -0.15% at 4490
  • Nasdaq futures -0.25% at 15336

In Europe

  • FTSE -0.16% at 7130
  • Dax -0.5% at 15780
  • Euro Stoxx -0.43% at 4163

Risk off dominates

US stocks are set to open in a mixed fashion struggling to build on recent record highs on the back of weaker data and as investors wait anxiously for the Jackson Hole.

US GDP Q2 second reading was upwardly revised to 6.6% on an annual basis, this was up from 6.5% but still short of the 6.7% forecast. The US economy received a bigger than initially expected boost thanks to robust consumer spending as stimulus checks were hand out. A rapid vaccination drive also boosted travel and confidence. However, momentum looks to be slowing more recently as covid cases rise reflected in consumer confidence and retail sales last data week.

Meanwhile US jobless claims rose to 353k last week up from 348k slightly missing forecasts of 350k.

The numbers come ahead of the start of the Jackson Hole Symposium. To say that this is the most eagerly awaited event of the week or even the month would be a gross understatement.  Federal Reserve Chair Jerome Powell’s hotly awaited keynote speech will take place tomorrow with investor’s ears pricked for any clues over when the central bank could start tapering its $120 billion per month bond buying programme.

Where next for the Dow Jones?

The Dow Jones trades within an ascending channel dating back to mid-June guided higher along the mid line. The price is extending the rebound from the 50 day ma reached last week with the all time high of 35630 insight. A close below the 50 sma around 34800 and the lower band of the ascending channel could be significant, negating the near-term uptrend.

FX – USD rises after 3 days of losses

The US Dollar is holding steady following the weaker than forecast data and as investors look to the Jackson Hole Economic Forum for further clues.

EUR/USD is holding up despite weaker than forecast German GFK consumer sentiment data. Consumer morale fell a worse than expected -1.2 points in September, down from -0.4 and below the -0.8 forecast. Weak data comes following disappointing German IFO business sentiment and weaker than forecast German manufacturing PMI in Monday. Supply chain bottlenecks, chip shortages and rising covid cases mean the economic recovery in Germany is losing momentum.
DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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