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14.09.2023 02:31 PM
US premarket for September 14: US stock market set for growth

US stock futures rebounded following yesterday's inflation data. S&P 500 futures rose by 0.3% and the tech-heavy NASDAQ jumped by 0.5%. European markets were mixed ahead of the European Central Bank's (ECB) interest rate decision, while oil neared a 10-month high. This surge in oil prices was due to a report from the International Energy Agency predicting a probable supply deficit. Meanwhile, European indices gained around 0.5% as mining companies rose, following China's announcement of another economic stimulus package.

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The euro trades in a narrow range awaiting the ECB decision. This may trigger a sell-off in risk assets. Rising interest rates might further hurt the European economy, potentially leading to a more significant downturn. Concurrently, global rising oil prices are exacerbating price pressures in Europe, slowing economic growth further.

As for the stock market, investors are closely watching Arm's IPO. Its debut might provide a much-needed boost to the sluggish IPO market.

At the same time, investors highlight the challenges as global central banks seem to tackle inflation mainly by raising interest rates.

Regarding today's data, US retail sales will be in focus. A significant jump would strengthen the US dollar against risk assets, indicating a likely further tightening of the Fed's monetary policy.

In Asia, demand for Japanese 20-year bonds was the highest since May 2020, suggesting speculations about ending negative interest rates in Japan might be gaining traction. The Japanese Nikkei 225 index climbed by 1.4%.

China's central bank cut the amount lenders must hold in reserves for the second time this year, aiming to support an economy struggling to maintain its previous growth rates. According to a statement released on Thursday, the People's Bank of China reduced the reserve requirement ratio for most banks by 25 basis points.

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As for the S&P 500, demand for the index remains steady. Bulls need to secure levels at $4,469 and $4,488. After that, they may push the price to $4,515. Bulls also should control $4,539, which will strengthen the bullish market. In the event of a downward move amid risk aversion, bulls will have to protect $4,447. A break below this level could quickly push the index back to $4,427 and pave the way towards $4,405.

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