Stocks May Benefit From Strength Overseas - US Commentary

WASHINGTON (Alliance News) - Following the mixed performance seen last week, stocks may move to ...

Alliance News 19 June, 2017 | 1:42PM
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WASHINGTON (Alliance News) - Following the mixed performance seen last week, stocks may move to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 70 points.

Early buying interest may be generated in reaction to strength in the overseas markets, which benefited from political news out of Europe.

French President Emmanuel Macron's party won a clear parliamentary majority in Sunday's election, giving him a strong mandate in parliament to pursue his pro-EU, business-friendly reform plans.

Additionally, Brexit negotiations with the EU are set to begin today after Britain bowed to pressure for a formal opening to their long-awaited negotiations rather than first holding technical talks between civil servants.

Trading activity may be somewhat subdued, however, as a lack of major US economic data may keep some traders on the sidelines.

The economic calendar for the week remains relatively quiet, although traders are likely to keep an eye on reports on new and existing home sales and leading economic indicators.

Among individual stocks, shares of Clovis Oncology (CLVS) are moving sharply higher in pre-market trading after the biopharmaceutical company announced positive late-stage trial data for its ovarian cancer drug.

Biotechnology company Rigel Pharmaceuticals (RIGL) may also see early strength on news the FDA has accepted its application for the use of Tavalisse in patients with chronic or persistent immune thrombocytopenia.

On the other hand, shares of Seattle Genetics (SGEN) may come under pressure after the biotechnology company said it is halting a late-stage trial of trial of vadastuximab talirine in frontline older acute myeloid leukemia patients.

Stocks turned in a mixed performance last Friday amid another round of downbeat economic data and news that online giant Amazon (AMZN) snapped up Whole Foods (WFM).

While the Nasdaq dipped 13.74 points or 0.2% to 6,151.76, the Dow edged up 24.38 points or 0.1% to 21,384.28 and the S&P 500 crept up 0.69 points or less than a tenth of a % to 2,433.15.

The major averages also turned in a mixed performance for the week. Moving lower for the second straight week, the Nasdaq slid by 0.9%, but the Dow rose by 0.5% and the S&P 500 inched slightly higher.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.6%, while Hong Kong's Hang Seng Index jumped by 1.2%.

The major European markets have also moved to the upside on the day. While the UK's FTSE 100 Index has risen by 0.5%, the German DAX Index is up by 0.9% and the French CAC 40 Index is up by 1%.

In commodities trading, crude oil futures are inching up USD0.13 to USD44.87 a barrel after rising USD0.28 to USD44.74 a barrel last Friday. Meanwhile, an ounce of gold is trading at USD1,251.10, down USD5.40 from the previous session's close of USD1,256.50. On Friday, gold rose USD1.90.

On the currency front, the US dollar is trading at 111.32 yen compared to the 110.88 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at USD1.1178 compared to last Friday's USD1.1198.

Copyright RTT News/dpa-AFX

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