US Futures rise, watch AAL, WMT, AXP

The S&P 500 Futures are trading on the upside despite a bearish gap opening on Monday morning
The S&P 500 Futures are trading on the upside despite a bearish gap opening on Monday morning as investors digested Apple's announcement of closing some stores in Arizona, Florida, North Carolina and South Carolina thanks to resurgence in coronavirus cases.

Later today, the Federal Reserve System Bank of Chicago will post May National Activity Index. The National Association of Realtors will report May existing home sales (4.1 million units expected).

European indices are trading within the red. No major economic data news were released except the U.K. Industrial Trends Survey factory orders posting a decline twice above expected in June at -58, but slightly better than the previous month historical low at -62. Later today, the Eurozone’s Consumer Confidence Index for June are going to be released (-15.0 expected).

Asian indices closed mixed. The Hong Kong HSI dropped 0.54% and therefore the Japanese Nikkei lost 0.18% while the China Mainland CSI 300 added 0.08% and therefore the Australian ASX 200 ended flat (+0.03%)

WTI petroleum Futures are gaining some ground, following Friday rally. the amount of U.S. oil rigs as of June 19 dropped by 13 from every week ago to 266, and oil rigs in Canada fell by 4 to 17, consistent with Baker Hughes. internet long position of WTI petroleum slid 7.1% on week to 354,363 contracts as of June 16, reported the Commodities Futures Trading Commission.

Gold is gaining ground while the US dollar consolidates on rising COVID-19 cases. 

Gold rose 3.89 dollars (+0.22%) to 1747.76 dollars.

EUR/USD rose 30pips to 1.1208 while GBP/USD gained 38pips to 1.2388.

US Equity Snapshot

 

American Airlines (AAL) plans to boost 3.5 billion dollars in shares and notes, to strengthen its record .

Walmart (WMT), the retailer, was upgraded to "buy" from "neutral" at UBS.

American Express (AXP), a globally integrated payments company, was downgraded to "sell" from "neutral" at UBS.

 EUR/USD To Test Yearly Low?

EUR/USD has dropped through $1.1 its lowest level since late February amid a rush for the shelter dollar. 

German ZEW sentiment data caused an already panicked market to worry some more. The ZEW index, which gauged financial analyst’s sentiment and consider on an economic situation dived in March, recording the steepest drop on record.

The ZEW index fell to -49.5 in March from +8.7 in February and is now at its lowest level since December 2011. 

German recession
Germany is heading for a recession. things is fast paced . However yesterday Chancellor Angela Merkel announced a general lock down of Europe’s largest economy. All shops are to be closed, no touristic travel domestically or abroad, restaurants open until 6pm and no sports or cultural events allowed. So, consumption will drop dramatically. Large car manufacturers have also announced a short lived halt to production. the availability shock demand shock are going to be crippling and therefore the economic impact are going to be staggering. 
And the problem isn't just Germany, Italy, Spain and France, the most important economies within the eurozone all face severe pressure from the coronavirus outbreak, as governments lock down countries with already very fragile economies.

US retail sales miss
Meanwhile US data is additionally disappointing. Retail sales declined a -0.5% in February, missing expectations of 0.2% increase. These figures show that consumption, the most driver of the US economy had began to slow even before coronavirus social distancing measures were enforced, raising fears that the info out of the approaching months are going to be hideous.

Offshore Dollar Market Stress 
Despite the Fed’s best efforts to ease pressures within the money markets recent signals suggest that the moves haven’t worked. this is often presumably a results of lenders hoarding the dollar in expectation of increased liquidity needs from companies and growing concerns over bad loans. The pressure was most explicit within the euro/dollar 3-month FX spread which widened to 124 bps at one point, its widest level since the ecu debt crisis and up from just 20 bps earlier this month. this suggests that market player are willing to pay higher premiums for dollars, an amber alarm flashing.

EUR/USD hit a 14 month high on 9th March. Since then a correction has been is play which could see the pair retest the year low. Global turbulence within the financial markets and fears of a recession are seeing traders hunt down safe havens like the dollar and therefore the yen. 
Levels to observe 
EUR/USD is down over 1.5% at $1.10, it's picked up off session lows of US$1.0974. It trades below its 50, 100 and 200 sma and comfortably below the descending trendline.
Immediate support are often seen at $1.0974 (today’s low) before $1.0953 (low 28th Feb) and $1.0880 (low 26th Feb).
Resistance are often seen at $1.1026 (200 sma), $1.1118 (today’s high) and $1.1130 (100 sma). we might be trying to find a move above $1.1170 to negate on the present bearish trend on 4 hour chart.