S&P 500 futures are swinging between gains and losses in premarket trading while traders evaluate their next steps after the historic G7 tax deal.
Over the week, G7 countries agreed to a minimum global corporate tax rate of at least 15%. The details of the deal would have to be negotiated over the upcoming months, and G7 countries will have to convince the rest of the world to join the deal.
The deal is viewed as a way to tax international tech giants, although it will have a significant impact on most industries. Interestingly, stocks like Apple or Facebook are mostly flat in premarket trading, and it looks that traders will wait for the upcoming negotiations before coming up with final conclusions about the ultimate impact of the new tax deal.
U.S. Dollar Remains Flat Despite Yellen’s Comments
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, remains close to the psychologically important 90 level despite comments from Treasury Secretary Janet Yellen that higher rate would be “a good thing”.
Yellen has recently stated that a slightly higher interest rate environment would be beneficial for the society. Yellen has been very dovish in the previous months, and this sudden change of tone could have had an impact on currency dynamics.
However, it looks that traders believe that Fed Chair Jerome Powell will keep rates at the bottom for as long as he can which is bearish for the American currency and bullish for stocks.
WTI Oil Tries To Settle Above The $70 Level
WTI oil has recently managed to settle above the $69 level and continues to move higher as traders focus on rising oil demand and the successful implementation of OPEC+ deal.
WTI oil has already made an attempt to settle above the $70 level but lost momentum and pulled back closer to $69.50. The oil market remains bullish, and it looks that oil may soon get to another test of the $70 level. In this light, energy-related stocks have a good chance to start the week on a strong note.