World Health Organization Reports A Record Daily Increase In Coronavirus Cases
On Sunday, the World Health Organization reported 183,020 new coronavirus cases. Most of this cases (116,041) were located in the Americas region.
Meanwhile, Europe also has problems as coronavirus reproduction rate has rapidly increased in Germany while Bulgaria had to make wearing face masks compulsory again.
Despite the worrisome news, S&P 500 futures are pointing to a higher open as traders bet that the unprecedented monetary stimulus from the world central banks will continue to boost asset prices.
The risk-on mode is highlighted by the weakness of the U.S. dollar, which is declining against a broad basket of currencies. The U.S. Dollar Index failed to settle above 97.5 and pulled back below this level.
Oil Struggles To Settle Above $40
WTI oil continues its attempts to settle above the key resistance level at $40. A move above this level will likely lead to increased upside momentum and help most oil-related equities gain more ground, providing support to the whole market.
Oil supply is getting tighter due to oil production cuts while demand improves as economies lift virus containment measures. At the same time, oil traders are worried about the potential second wave of the virus and its implications for the travel industry which is an important source of oil demand.
A continuation of the current oil rally will have a positive impact on S&P 500 and could push it towards recent highs, so traders should closely watch oil price dynamics in the upcoming trading sessions.
Gold Tries To Get Above $1750
Gold may also have an impact on today’s trading session since it is trying to get above the key resistance level at $1750 on a spot basis.
Gold stocks like Barrick Gold and Newmont Mining have pulled back from their highs reached in May while gold is trying to get to new highs.
This situation creates a setup for increased demand for gold equities in case gold manages to settle above $1750 per ounce and continue its upside move after a period of consolidation.
For a look at all of today’s economic events, check out our economic calendar.