A bit of a fizzle once again after the early optimism to start the new week?
S&P 500 futures are down 0.4% with Dow futures seen down 0.3% ahead of European trading today, with Nasdaq futures keeping more flat for the moment.
It is still early in the day but after closing at record highs yesterday, is there going to be a bit of a fizzle – similar to what we saw after the Pfizer news last week?
The more tepid tones above is keeping major currencies more guarded to start the day with narrower ranges still prevailing. EUR/USD is trading within a 16 pips range between 1.1851 and 1.1867 while USD/JPY is little changed close to 104.50.
For the former, there are large expiries seen @ 1.1850 and 1.1900 today so that could very well keep price action in-check before they roll off later on in the day.
Elsewhere, AUD/USD is little changed with price still holding below near-term resistance closer to 0.7340 and NZD/USD is still tinkering around the 0.6900 handle to start the day.
In other news, just be aware that the S&P 500 is about to get more tech-ish starting from 21 December as Tesla will be joining the index and account for ~1% of the index.
That is likely to lead to a flurry of index rebalancing in the coming days/weeks, with S&P stating that index funds will have to sell about $51 billion worth of shares of companies already in the S&P 500 and use that money to buy Tesla to correctly reflect the index.