There’s an air of optimism prevailing over Wall Street ahead of the opening bell. Hopes that a China-US trade deal may be near, the idea that a Federal Reserve rate cut may be forthcoming and the prospect of more positive earnings news after yesterday’s rather mixed bag each have the ability in isolation to lend further support to equities. This positivity is however pushing both the DOW and the S&P 500 closer towards a test of all time highs, underlining the market’s apparent commitment to extending the bull run for a while longer yet.
Earnings season remains in full swing, with today’s highlights likely to include Bank of America and Johnson & Johnson before the opening bell, whilst Netflix and IBM are set to report after the close. US industrial and manufacturing production data is also due to be published before trade gets underway, with any shortfall here having the potential to again shape opinions over the Fed’s likely next steps.
Ahead of the open the market is calling the DOW to open up 88 at 26473 and the S&P up 9 at 2915.
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In this edition of “Charts of the Week”, we will have a look at precious metals where the short-term outlook has turned brighter, as well as Bitcoin which is going through a major sell-off right now, followed by Oil – which is finally on the move after days of consolidation – and two major currency pairs.