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Stock Futures Up, Oil Prices Reaches A Major Price Level

Stock Futures Up, Oil Prices Reaches A Major Price Level

European stock futures are trading higher as investors are optimistic about the coronavirus vaccine’s approval in the US. The negotiations are still going on in Washington to secure the second stimulus package. A bipartisan group of lawmakers is expected to come up with a $900 billion pandemic relief bill, and there are hopes that there could be some cheering in Congress about this bill.

Commodities

In the commodity space, we are not seeing the gold price moving much. Gold prices are still very much maintaining their uptrend while investors are keeping a close eye on coronavirus vaccine developments in the US. Today is the first day when vaccine deliveries will begin in the US, and nearly 50 states will have the vaccine by Wednesday.

One important thing to keep in mind is that gold prices are heading towards their first quarterly loss since 2018 as the coronavirus vaccine has amplified hopes of faster economic recovery. Central banks around the globe are still maintaining their dovish monetary policy but this particular factor isn’t helping the bulls to push the gold price towards the all-time high. Investors will keep a close on the Federal Reserve’s last meeting for this year, and the meeting is likely to bring higher volatility for the precious metal. This is because the Fed will provide fresh guidance on its asset purchase programme, and if the Fed shows more confidence in their statement, the likely chances are that we may see a sell-off in the gold price. 

As for the black gold, Crude and Brent are both moving higher and starting the week on a higher note. Brent oil has reached the 50-dollar mark, a critical milestone, and Crude prices topped the $47 price level earlier today. The recovery in oil demand is primarily on the back of coronavirus vaccine hope. Investors feel confident that the vaccine will bring matters towards normalisation, and oil demand will pick up more pace.

If we look at the oil prices since October, there is no doubt that the rally has been very strong. Oil prices are up over 30%, and Brent oil is at a nine-month high.

Crypto

In the crypto space, Bitcoin recovered its hangover over the weekend, and the prices topped the 19K price level once again. However, they are now down from their weekend high. The Bitcoin price needs to break above the 20-mark, as only then will it involve fresh capital. It is true that if the Bitcoin price continues to spend more time near the 18K to 19K price level, the odds are that we may see the price breaking above the 20K. 

Forex

Currency traders feel much better as the Brexit deadline has been extended again while the topsy turvy trade talks continue between the UK and the EU. The fact is that lawmakers have given the Brexit talks another chance; traders are hoping that Boris Johnson and Ursula von der Leyen will both reach a deal at the last minute. Both lawmakers have agreed on the phone call that they are ready to go the extra mile in order to secure a deal. Looking at the Brexit negotiation history, there is always a deal, but it happens at the last minute, and this is what traders are expecting this time as well. The Sterling-dollar pair is holding on to its gains, and the door is open for the currency pair to touch the 1.35 mark.