Tesla Shares Lose Ground In Premarket Trading Ahead Of ‘Battery Day’
Tesla shares are down by almost 5% in premarket trading as investors prepare to hear the latest news on the company’s battery technology.
Tesla is expected to show improved batteries that will deliver better driving range and come at a lower cost. However, Elon Musk stated that “serious high-volume production” of new batteries will not come until 2022.
Tesla’s ‘Battery Day’ may set the tone for the trading of other tech stocks as big tech names often trade as a group. While Tesla is not yet included into S&P 500, it has a significant impact on market mood.
It remains to be seen whether traders will be able to shrug off yesterday’s fears about the second wave of lockdowns in Europe. Currently, S&P 500 futures are swinging between gains and losses in premarket trading as traders are undecided about the near-term direction of the market.
UK Encourages Working From Home But Oil Still Tries To Get Back Above The $40 Level
WTI oil made an attempt to settle back above the psychologically important $40 level despite increasing risks of a second wave of lockdowns that may hurt oil demand.
Perhaps, traders are betting that new restrictions will be limited and will not have a major impact on oil demand recovery.
If oil manages to gain some ground today, the beaten oil-related stocks will have a chance to rebound. However, traders should note that virus fears may return at any moment as the situation in Europe remains challenging.
Miners In Spotlight As Strong Dollar Puts Serious Pressure On Gold And Silver
U.S. dollar managed to gain upside momentum against a broad basket of currencies as traders sold riskier assets amid fears about lockdowns and their negative impact on the world economy.
Strong dollar put significant pressure on silver which declined from $27.00 to $24.00 and tries to settle below the $24 level. Meanwhile, gold is attempting to settle below the $1900 level.
Gold and silver miners have already been hit hard during yesterday’s trading session and may find themselves under significant pressure today if gold and silver continue their downside moves.
For a look at all of today’s economic events, check out our economic calendar.