Futures in Wall Street trade with solid gains ahead of the cash market opening recovering some of yesterday’s losses that incurred by a late sell-off. The selling pressure came after reports that questioned the reliability of the results from the clinical trials of the Moderna’s coronavirus vaccine. The reopening of the economy and the lower rate in new confirmed coronavirus cases and deaths helps investors sentiment.
However, the dismal economic data continues. Yesterday reported that the new U.S. housing starts and building permits drop in April to the lowest levels since 2015. The Housing Starts came down -30.2% in April the previous reading was at -22.3%. The Building Permits Change came down to -20.8% in April from -6.8% in March.
Secretary Mnuchin, in his testimony in the Senate Banking Committee, said that is prepared to distribute the entire $500 billion to help the coronavirus battered businesses. Jerome Powell reiterated the Fed’s commitment to relief programs aimed at keeping markets healthy and getting money to those who need it during the crisis.
European Markets Mixed As Common Bond Meet Resistance
European stocks trading mixed by midday, after the Netherlands, Austria, Sweden and Denmark who support lower EU spending, expressed their doubts on common bonds and grants, under the coronavirus recovery effort. The four countries said they would come forward with their own proposal soon. The relief package needs to get approval from all 27 members. The Dax index is 0.12% higher at 11,088, while the CAC 40 index is 0.57% lower at 4,432. In Milan, the FTSE Mib index is 0.34% lower at 16,976. In London, Rolls Royce share price slides as fresh job cuts loom. The FTSE 100 index is 0.17% higher at 6,013.
Crude Oil Price Continue Higher
WTI crude oil futures trade 2.00% higher at 32.60 as the expiration in June futures contracts expired without any extraordinary fluctuation showing that the shortage in storage facilities is no more a headache for crude oil investors. The Brent crude oil is 2.71% higher at $35.44. The Gold price approaches the nine-year highs adding 0.36% higher at 1,751, while silver price is 0.87% higher at 17.46.