Stocks Set To Open Higher As Rally Continues

·2 min read

Stocks Stay Strong Ahead Of The Weekend

S&P 500 futures are moving higher in premarket trading, and the market looks ready to test new all-time high levels.

The yield of 10-year Treasuries has recently made an attempt to settle above the 1.70% level but failed to develop sufficient upside momentum and pulled back. It should be noted that stocks have ignored the developments in U.S. government bond markets in recent trading sessions, and it remains to be seen whether the stock market will be worried if the yield of 10-year Treasuries gets above 1.70%.

Today, traders will have a chance to take a look at flash PMI reports for October. Analysts expect that Manufacturing PMI declined from 60.7 in September to 60.3 in October while Services PMI improved from 54.9 to 55.1.

China’s Evergrande Avoids Default

China’s developer Evergrande avoided default as it made an $83.5 million bond coupon payment right before the end of the 30-day grace period.

Fears about financial contagion from Evergrande’s potential default have put some pressure on markets, but traders do not look worried about debt problems of Chinese developers.

However, traders should continue to monitor the story closely as Evergrande may still face restructuring in the longer-term due to the high debt load.

Gold Tries To Settle Above The $1800 Level

Gold managed to gain upside momentum and is currently trying to settle above the resistance at the $1800 level. RSI for gold remains in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.

In case gold settles above $1800, it will head towards the next resistance level at $1830 which will be bullish for gold mining stocks.

It should be noted that silver is also strong today. Currently, silver is testing the resistance level at $24.50. A move above this level will push silver towards the next resistance at $24.80 which will provide more support to silver mining stocks.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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