US Open: Stocks rise, Twitter soars
US stocks are up slightly with Russian developments taking center stage, as well as Twitter on news that Elon Musk is now the social media platform’s largest shareholder.
US Futures Contracts
- Dow futures +0.15% to 34855
- S&P futures +0.23% to 4555
- Nasdaq futures +0.44% to 14,925
- FTSE -0.23% to 7546
- Dax -0.09% to 14460
- Euro Stoxx -0.04% to 3928
Russia and Twitter in focus ahead of FOMC minutes later in the week
Shares are set to open broadly flat on Monday as investors watch the latest developments in Russia, eagerly await the release of the FOMC’s final minutes on Wednesday and after Elon Musk bought a stake in Twitter, boosting the stock price. ‘action.
Market sentiment deteriorated slightly in the European session amid fears that a peace talk would not move forward. Meanwhile, horror at the atrocities committed by Russian troops in Bucha has prompted Western leaders to consider further sanctions against Moscow.
There is little on the economic calendar today. Investors will instead await the release of the FOMC minutes on Wednesday. Friday’s strong jobs report, combined with inflation at a 40-year high, supports expectations that the Fed will raise rates by 50 basis points at the next meeting.
In company news:
Elon Musk built a 9.2% stake in Twitter worth around $2.89 billion as of Friday’s close, making him the social media platform’s largest shareholder. Twitter shares jumped 25% before market on the news.
The news comes after Elon Musk last month hinted at launching his own social media platform after criticizing Twitter for its policies and respect for free speech. Musk is one of Twitter’s biggest personalities.
The move will likely test Parag Agrawal who took over from Jack Dorsey as CEO in November and set ambitious goals such as growing to 315 million daily users and raising revenue to $7.5 billion. by the end of next year.
What’s next for the Twitter stock price?
Twitter’s stock price is expected to jump 20% at the open, a move that will take the price to around $47, a 2022 high. This move will highlight the December 21 high at 48.20 $, with a break above here exposing the 200 SMA at 52.25. The RSI is supportive of further upside, although this move may push the RSI into the overbought territory, which is worth watching. Support can be seen around $44, a level that capped gains several times in December.
Currency Markets USD rebounds, EUR trades lower.
The USD then rises as it plots higher Treasury yields and market sentiment begins to deteriorate. Concerns about the possibility of a diplomatic solution to Ukraine are hurting sentiment, increasing demand for refuge.
The euro is trading lower after data showed eurozone investor sentiment fell to a 20-month low in April. The Sentix Investor Confidence Index fell to -18 from -7 in March and well below forecasts of -9.2.
GBP/USD is down as attention shifts to BoE speakers. While the BoE has hiked interest rates three times in the last three central bank meetings, doubts remain about the extent to which policymakers can tighten further without tipping the economy into recession. BoE’s Cunliffe is due to speak shortly.
- GBP/USD -0.2% to 1.3100
- EUR/USD -0.4% to 1.1002
Oil stable after a 13% drop
After plunging 13% last week, oil prices are stabilizing as investors remain concerned about supply shortages and stalled talks with Iran to revive the Iran nuclear deal.
Oil fell sharply last week after the United States said it would release 1 million barrels of oil a day over the next six months. Although it replaces some of the 1-3 million barrels of Russian oil missing from the market, it certainly does not fully compensate. Even so, it was enough to bring prices back towards $100. The release of reserves mitigates but does not resolve the supply shortfall.
The market is now looking for another source of supply. There had been hopes that reviving the Iran nuclear deal would lead to the lifting of sanctions on Iranian oil and more oil returning to the market. However, the talks have stalled, with each side blaming the other.
- WTI crude trades +0.5% at $99.15
- Brent is trading +0.4% at $104.50