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US pre-open: Stocks set to rebound as rate of new cases slows in Europe

By Iain Gilbert

Date: Monday 06 Apr 2020

US pre-open: Stocks set to rebound as rate of new cases slows in Europe

(Sharecast News) - US futures were pointing to solid gains ahead of the bell on Monday after an overall more optimistic tone around the Covid-19 pandemic from the White House at a press conference a day earlier.
As of 1250 BST, Dow futures were up 3.58%, while S&P 500 and Nasdaq-100 futures had the indices opening 3.66% and 3.71% firmer, respectively.

The Dow Jones closed 360.91 points lower on Friday after data revealed that non-farm payrolls collapsed in March, although another sharp rally in crude oil futures helped to stem losses.

Optimism about a marked slowdown in the increase of death rates and new infections in the hardest-hit countries like Italy and Spain had indices opening higher on Monday and had many investors hopeful that current restrictions could be shorter-lived than many had previously speculated.

However, Donald Trump was still cautious, warning that there would be "a lot of death" in what looked set to be the US' "toughest week".

Also underlining sentiment was news that Russia and Saudi Arabia were very close to a deal on coordinated oil production cuts but oil prices were down after a meeting between OPEC and Russia scheduled for Monday was postponed until Thursday.

Oanda's Craig Erlam said: "There's no shortage of volatility at the start of the week, or over-confidence for that matter, as stock markets jump on some apparently promising numbers in recent days.

"Optimism is misplaced as far as the UK and US is concerned though. The next week or two is going to be grim and one day of better data from the US doesn't change that. Investors are keen for the market to have bottomed but I'm not sure they'll easily weather the storm to come and their nerves will likely be heavily tested."

No major corporate earnings on data were scheduled for release on Monday.

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