S&P 500 futures are gaining ground in premarket trading as traders look ready to buy stocks after yesterday’s pullback.
Treasury yields have started to move higher as demand for safe-haven investments decreased. Interestingly, U.S. dollar continued to gain ground against a broad basket of currencies, and the U.S. Dollar Index made an attempt to settle above the resistance at 92.50.
Precious metals also rebounded after yesterday’s pullback despite stronger dollar and higher yields so shares of gold and silver miners may have a strong start of today’s trading session.
WTI Oil Moves Higher As Giant Container Ship Blocks Suez Canal
WTI oil managed to get above the $59 level after testing the support at $57.50 as a huge container ship blocked Suez Canal after its crew lost control of the vessel due to winds and dust storm. Currently, tug boats are trying to get the ship out of trouble.
Suez Canal is an important way that is used to bring oil from Middle East to Europe and U.S. so the incident served as a bullish catalyst for the oil market.
It should be noted that Suez Canal is very important for global trade so local authorities will use all available means to solve the issue as soon as possible. Once the issue is solved, the oil market will have to face problems caused by the third wave of the virus in Europe.
Durable Goods Orders Declined By 1.1% In February
The U.S. has just provided Durable Goods Orders report which indicated that Durable Goods Orders declined by 1.1% month-over-month in February compared to analyst consensus which called for growth of 0.8%.
Earlier this week, Existing Home Sales and New Home Sales reports missed analyst estimates so all recent economic reports were disappointing.
Today, traders will also have a chance to take a look at flash readings of Manufacturing PMI and Services PMI reports for March. Manufacturing PMI is projected to grow from 58.6 in February to 59.3 in March while Services PMI is expected to increase from 59.8 to 60.