After pausing for a couple of days, equities have resumed the upward course that started on Monday with US index futures, the FTSE and the DAX all up 0.5%-0.6%. Other markets are mixed today. Commodities are backsliding a bit with WTI crude oil down 0.2% and copper down 0.6%. Cryptocurrencies are stabilizing with Bitcoin up 2.7% and Ethereum up 2.0%.
In currency action, the British Pound is under pressure, falling 0.3% against the US Dollar and moving in the opposite direction of the other majors. The Bank of England maintained its current interest rate and asset purchase targets even after expressing concern about inflation and upgrading its economic outlook, a dovish stance.
Its a busy morning for US economic data. US durable goods orders increased less than expected in May (2.3% vs street 2.7%), but this shortfall can be fully explained by an upward revision to the April number. Weekly initial jobless claims did not improve as much as the street had hoped (411K vs street 380K and previous 418K). Q1 GDP growth remained at 6.4% as expected.
In corporate news, Eli Lilly is up 7.6% premarket after its Alzheimer’s drug candidate received “breakthrough therapy” status from the FDA, opening the door to an expedited approval process. Construction and infrastructure stocks could attract attention later in the day with President Biden meeting with congressional leaders from both parties to discuss a new infrastructure spending package.
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