U.S. stock futures rose on Tuesday, potentially ending Wall Street’s five-day losing streak, as the dollar retreated from its two-decade high amid a modest rebound in global stocks .
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked down 0.4% in overnight trading as investors lifted global stocks by one two-year low after last night’s plunge into bearish territory for the Dow Jones Industrial Average. .
In what could be a relief rally after five days of declines, as well as a 7.6% September decline for the S&P 500, stocks in Europe and Asia posted modest gains as currency markets have stabilized and the pound has recovered almost 5% from the historic lows it reached against the dollar at the start of the week.
With few key data releases this week ahead of the PCE price index on Friday, and only two bluechip earnings reports – both due Thursday – to guide markets in the near term, traders and investors should focus on the dollar’s day-to-day moves, as well as a resurgence in the CME Group’s key volatility indicator, for broader direction.
The Vix index, in fact, rose 4% in overnight trade to 31.12 points, about 3 points south of its recent peak in mid-June.
Benchmark 2-year Treasury yields also fell alongside the dollar, falling to 4.211% in overnight trading after a weaker-than-expected auction of $43 billion in new notes yesterday afternoon. .
Oil prices were also active, dropping from their lowest closing levels in more than nine months, as the dollar retreated and traders looked ahead to next week’s OPEC meeting in Vienna and the possibility production cuts to support beaten prices.
Gulf of Mexico drillers have also decided to evacuate workers from key facilities as Hurricane Ian accelerates its path towards Florida’s west coast.
The Greater Gulf Region, which accounts for about 15% of U.S. crude production and 5% of its natural gas production, has been spared serious storm problems so far this year in the middle of the one of the calmest hurricane seasons in decades.
BP plc and Chevron (CLC) said Monday evening that they had begun withdrawing all personnel from a total of four rigs in the Gulf of Mexico ahead of Hurricane Ian’s advance, a move that could disrupt production of around 500,000 barrels of oil per day.
WTI futures for November delivery rose $1.02 to $78.73 a barrel in overnight trading, while Brent contracts for the same month rose $1.31 at $85.37 a barrel.
In the currency markets, the pound rebounded from historic lows against the dollar on Monday, but remains firmly in the sights of traders, even after a late statement of potential support from the Bank of England.
The dollar-pound exchange rate, known to forex traders as “cable”, has gained nearly 5% since hitting its low of 1.0325 on Monday and was last pegged at 1, 0810 at the start of transactions in London.
In Europe, the region-wide Stoxx 600 was up 0.6% at the start of trading in Frankfurt, while Britain’s FTSE 100, whose major constituents derive the bulk of their revenue outside the Kingdom United, fell 0.16%.
On Wall Street, S&P 500 futures point to an opening bell gain of 45 points ahead of durable goods data for August at 8:30 a.m. EST, and numbers new home sales at 10:00 a.m. Eastern.
Contacts tied to the Dow Jones Industrial Average are priced for a 300-point lead after crashing into bearish territory last night, while those tied to the tech-focused Nasdaq point to 165-point upward movement.
You’re here (TSLA) The shares were the most active name in premarket trading, rising 2.25% following a report suggesting executives are bracing for a ‘high volume’ of last-minute deliveries that could close a record quarter for the clean-energy automaker.