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6
Apr

EU Sentix Investor Confidence, US JOLTS Job Openings

calendar 06/04/2021 - 07:51 UTC

Despite an equity market that seems to be surging on hopes that a strong economic recovery is underway, the dollar seems to be on a different path for the past few days reversing its positive trajectory. This recent weakness in the dollar could partly be attributed to declining U.S. bond yields, as fundamental reports coming from the U.S. appear to be exceptional.

The Caixin/Markit services Purchasing Managers' Index rose to 54.3, the highest since December, from 51.5 in February, well above the 50-mark that separates growth from contraction. This came after a strong jobs report on Friday, where the largest gain in jobs since last August was announced.

In the energy sector, WTI crude oil has posted a significant drop of almost 4% on Monday, as traders as investors seem to be reacting to an obvious intention from US and OPEC+ producers to ramp up production and Iran’s strong return into the oil markets. Gold showed little movement on Monday trading, ending Monday in positive territory, and trading right above the 1730$ per ounce level as at 07:39 AM GMT on Tuesday, 3% higher from the low of 1678$ reached on Thursday.

Germany announced plans Monday to have 20% of its population immunized against the novel coronavirus by the beginning of May, but that would still put the European Union’s largest country way behind the U.S. in percentage terms.

Spanish, Italian and EU unemployment figures are due on Monday together with the Sentix Investor confidence while in the US, JOLTS Job Openings and IBD/TIPP Economic Optimism are due later in the day.

U.S. job openings for February are released on Tuesday at 14:00 GMT, with analysts expecting a reading of 6.99 million, which would be up from 6.917 million the prior month. In addition, the Sentix Investor confidence index while in the U.S. JOLTS Job Openings and IBD/TIPP Economic Optimism are due later in the day.

EUR/USD

Following a sharp drop that started on February 25th, where the EUR/USD went form levels above 1.22 to hit a low of 1.17046 by the end of March, however, some recovery is seen over the past few days paced by declining U.S. bond yields. The 10-year Treasury yields continued dipped below 1.7% early on Tuesday’s Asian session, from a peak of 1.776% last week, a level not seen since January of last year.

For Tuesday, Eurozone unemployment figures are due together with the Sentix Investor confidence index while in the U.S. JOLTS Job Openings and IBD/TIPP Economic Optimism are due later in the day.

EUR/USD

Bitcoin

The cryptocurrency market capitalization reached a new all-time high of $2 trillion on Monday, according to data and market trackers CoinGecko and Blockfolio, as the rise in prices over the past months drew some attention from institutional as well as retail investors. By.

The surge was led by bitcoin, which hit its own milestone by holding at a $1 trillion market cap for one week. Bitcoin was up by 1.6% on Monday, following a 1.97% gain the day before, approaching its lifetime peak of more than $61,000 that was reached mid-March.

Analysts said as long as bitcoin stays above $53,000, it will be able to maintain its $1 trillion market cap.

Ethereum, the second largest cryptocurrency in terms of market cap, was up 1.44% ending the day at $2,112, while its market cap was valued at $244 billion on Monday. It also reached a record peak on Friday, at $2,150.

Bitcoin

WTI Oil

As equity markets appear to be riding on a positive sentiment, oil crude prices fell by almost 4% on Monday, as traders show a bullish tendency following the decision by OPEC+ to remove its year-long production cuts on the assumption of increasing summer demand for oil.

While markets took their time to assess these new developments in the Energy market, and the OPEC+ announcement was taken lightly last week, it appears that stubborn coronavirus situations outside the United States and the fact that Iran, which has been violating the sanctions for some time is ramping up production, have altogether brought a bullish sentiment for oil traders.

On Tuesday, oil inventory data is due form the American Petroleum Institute followed by the Energy Information Administration report, due to be announced on Wednesday.

WTI Oil

US 500

The US 500 and US 30 closed at record highs on Monday as tech stocks surged on positive ISM nonmanufacturing data for March that came right after the strong employment data reported on Friday which could pave the way for a strong economic recovery.

The US 500 continues to surge since March 15th adding another daily gain of 0.91% and ending the day at 4069, after hitting a record high of 4074 during the day.

Tech stocks played a major role in the record-setting day on Wall Street, with Tesla standing out as one of the standout performers on the day, rising 5% after the electric vehicle maker reported record first-quarter deliveries, and Google-parent Alphabet posting gains of 3.96%, boosted by positive news confirming that the tech-giant had won a court ruling that declared it had not infringed the Oracle Java software.

Investors are now looking ahead to the start of the quarterly earnings season.

US 500

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