Oil is on the rise again this morning making a new 52 week high. WTI oil is trading higher by $1.15 to $111.45 a barrel. The stock market seems to love it as the S&P 500 e-mini futures(ES M1) are trading higher again this morning by 6.25 points to $1335.00 per contract. Who could have ever guessed that high oil would boost the stock market indexes on a daily basis?
Improving economic outlooks for both the Euro Zone and U.K. are helping to boost the Euro and British Pound versus the Dollar overnight. Both currencies continue to soar to the upside, driven by strong trend buying and the lack of overhead resistance.
Stock indices extended their gains on Monday boosted by a strong outlook for the global economy. In the meantime, the outlook for the U.S. recovery weakened as July PMI fell and Fed Chairman Bernanke expressed his concerns for labor and housing.
This week the EUR USD penetrated the 1.31 price level for the first time since May. The primary driving forces behind this move were the better outlook for the Euro Zone economy and the weak outlook for the U.S. economy. The data out of Europe may have brought the European Central Bank closer to a rate hike than the Fed.
U.S. stock futures are called higher this morning as investors look forward to a positive earnings season. Late yesterday Alcoa kicked off earnings season by reporting a $136 million profit on stronger-than-anticipated 22% revenue growth. Shares climbed after the report helping to drive the Dow higher.
An improved outlook for earnings helped boost U.S. equity futures following sluggish overnight session. U.S. stock index futures turned higher shortly before the opening after trading lower overnight because of fear about a slow down in the global economy.
Stock index futures fell sharply lower on Thursday as investors slashed positions following a weak outlook for the economy and bad earning expectations for consumer-oriented and energy stocks.
The NZD USD continued to mount a strong comeback rally following the formation of the .6572 closing price reversal bottom earlier in the week. The rally has already exceeded expectations, which is a sign of higher markets to come. The chart pattern suggests that a double-bottom is forming at .6560 to .6572 which projects a rally to .7238. This move may take some time to form.
The U.S. Dollar Index made a new high for the year, boosted by the sharp sell-offs in the Euro, British Pound and the commodity-linked currencies. Gains were limited slightly by the rise in the lower-yielding Japanese Yen.
Thin trading conditions ahead of the U.S. Non-Farm Payrolls Report on Friday and less than stellar economic news from the Euro Zone helped to weaken the Euro on Thursday. The lack of fresh news from the Euro Zone regarding debt issues is encouraging investors to return their focus to the basic fundamentals.
