Stocks Set To End The Week On A Strong Note

S&P 500 futures are moving higher in premarket trading, boosted by strong flash PMI reports from around the world.

Euro Area Services PMI increased from 50.5 in April to 55.1 in May compared to analyst consensus of 52.3 as the services segment enjoyed the rebound after European countries started to relax virus containment measures. Euro Area Manufacturing PMI declined from 62.9 to 62.8 but remained at high levels.

In the UK, Manufacturing PMI increased from 60.9 to 66.1 compared to analyst consensus of 60.5. Services PMI improved from 61 to 61.8. The reports highlighted the recovery of the global economy and boosted markets.

Soon after the market open, traders will have a chance to take a look at the latest PMI data from the U.S. Analysts expect that Manufacturing PMI declined from 60.5 in April to 60.2 in May while Services PMI decreased from 64.7 to 64.5.

WTI Oil Rebounds Towards The $63 Level
WTI oil gained upside momentum and managed to return to the $63 level after the release of strong PMI data in various countries.

Oil traders focused on the recovery of the world economy and ignored fears about additional supply from Iran. This week, oil traders were worried by the reports about successful negotiations between U.S., Iran and other interested parties that could lead to the restoration of the Iran nuclear deal.

However, it looks that traders believe that if the economic recovery is robust enough, the oil market should be able to deal with extra barrels of oil from Iran. Most likely, today’s oil price rebound will help energy-related stocks at the start of today’s trading session.

U.S. Dollar Gets Some Support Ahead Of The Weekend
U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, failed to settle below the support at 89.75 and moved closer to the resistance at the 90 level. The support at 89.75 has been tested many times this week, but U.S. dollar did not manage to settle below this level.

It looks that foreign exchange market traders will have to wait until the next week to find out whether dollar can develop additional downside momentum, which will be bullish for stocks and commodities. Meanwhile, gold and silver continue to move higher despite stronger dollar, which can provide some support to gold mining stocks and silver mining stocks today.

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