The dollar rebounded from a key 200-DMA support level, strengthening against all major peers, pushing S&P futures higher as European shares rose, led by basic resources and real estate, while Asian stocks fall. Gold fell from its highest level since November as demand for some haven assets ebbed while global bonds declined. Oil dipped, pressured by a stronger dollar.
In a relatively quiet session, which may see US traders sleep in a bit after last night's Superbowl thriller, European and Asian shares rose ahead of Mario Draghi’s testimony at the European Parliament, while US equity futures were fractionally higher (up 0.1% to 2,293) after stocks jumped the most in a week, as traders assessed the trajectory for interest rates while scrutinizing every new Trump tweet.
The leader of the anti-immigration French National Front party Marine Le Pen kicked off her presidential campaign on Saturday by echoing many of the same vows that brought Trump to power in the US, hoping promises to shield voters from globalization, promote protectionism, leave the Eurozone, slap taxes on imports and on the job contracts of foreigners, lower the retirement age, increasing welfare benefits and boost defense spending push her above her competitors at a time of sweeping political turmoil in France.
European shares and S&P futures fell amid mixed earnings from corporate heavyweights, while Asian stocks were fractionally higher. The dollar slump continued against all its major peers after the Federal Reserve gave dollar bulls little to be optimistic about. The U.S. currency dropped toward the lowest close since November after the Fed reiterated its intention on Wednesday to lift rates only gradually.
As the political scandal gripping (former) French presidential frontrunner Francois Fillon grows, his public support is tumbling and according to a new opinion poll released on Wednesday, the conservative presidential candidate would no longer even make the second round of this spring's presidential election in France, raising the pressure on him as a scandal over his wife and children's publicly funded "fae work" engulfed his campaign.