Breaking News
0

Futures Higher Ahead Of Trump's State Of The Union Address

By MarketPulse (Craig Erlam)Market OverviewFeb 05, 2019 05:58AM ET
www.investing.com/analysis/futures-higher-ahead-of-state-of-the-union-200383525
Futures Higher Ahead Of Trump's State Of The Union Address
By MarketPulse (Craig Erlam)   |  Feb 05, 2019 05:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Trade talks and border wall comments eyed

U.S. futures are back in the green on Tuesday following a strong start to the week, as investors turn their attention to Trump’s State of the Union Address.

The speech will be closely monitored by investors, keen to get an update on trade talks with China and border security, or more specifically the wall, which led to the longest ever government shutdown last month and could trigger another in just over a week.

There have been plenty of reports that Trump is considering using emergency powers to deliver on his promise of border wall funding and this could be the platform for it, or at least a strong hint of an intention to do so.

European stock markets have had a good morning, with the FTSE the rare outperformer as sterling continued to edge lower and BP (LON:BP) earnings lifted the oil sector.

Higher oil prices and output contributed to the stunning profit growth, which bodes well for the rest of the sector, especially with prices appearing to have bottomed and showing potential for another burst higher.

Oil continues to test key resistance

WTI and Brent are pushing hard against technical resistance right now. There are a number of supporting factors for oil prices at the minute, be it the OPEC+ production cut agreement, falling U.S. oil rigs, the less pessimistic growth outlook or an overall improvement in market risk appetite.

Resistance remains around the $65 and $55 levels, which are holding for now but may weaken the longer it persists. A break through here could be a very bullish signal and the catalyst for another pop higher.

Both API and EIA have reported rising inventories over the last couple of weeks which may cast some doubts over the success of the output cut that was put in place late last year. Of course, this takes time to have a significant impact but if there’s any question that compliance is lacking, it could easily threaten the recovery in oil prices.

Again though, U.S. output is also key here and it may be at record highs now but the rig count has been declining since mid-November, which may be an interesting leading indicator for future production.

US Oil Rig Count
US Oil Rig Count

Gold soft on re-surging dollar but may prove temporary

Gold continues to pare late-January gains, with the burst that took it through $1,300 having lost its spark. I’m not concerned at this stage and as long as it remains above $1,300, I think it continues to look bullish.

It will be interesting to see whether it finds strong support if the level is tested from above, with a rebound off here providing bullish confirmation of the initial breakout and providing some level of comfort to gold bulls.

Gold Daily Chart

Gold Daily Chart
Gold Daily Chart

We may have more days of softness in the interim though, with a similar rebound in the dollar being primarily responsible for gold’s reversal of fortune.

The greenback has been experiencing a bit of a bounce over the last few sessions, aided by the jobs report on Friday which offered further comfort on the state of the U.S. economy. Still, I’m not confident the gains can be sustained against the backdrop of a more dovish Fed and positive trade talks with China.

Original post

Futures Higher Ahead Of Trump's State Of The Union Address
 
Futures Higher Ahead Of Trump's State Of The Union Address

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email