Dow Futures Edge Higher in Hopes of Reopening the Economy in New York as Cases Decline!

Dow Jones Futures edged higher ahead of its Monday trading session in hopes of the possibility of reopening businesses after a long halt from the coronavirus outbreak.

 

Dow Jones Futures rose 234.50 points or 0.99% to 23,892.50 points as of 15:41 local time in Thailand on Monday. S&P 500 Futures gained 0.96%, and Nasdaq Futures advanced 1.19%. On the contrary, WTI for June delivery $2.32/bbl or 13.70% to $14.62/bbl after a 4-day hike last week.

Yesterday, the New York Governor Andrew Cuomo described the plans to re-open the state’s economy in phrases. The first phrase includes construction and manufacturing sectors. The second phrase includes other businesses which would need to introduce a plan to protect the virus, including social distancing practices and having personal protective equipment.

The plan to reopen businesses came after a decline in coronavirus-related hospitalizations for the 14 days straight, while the fatality is nearly one-month low.

 

However, the U.S. crude price for June delivery slumped below $15.00/bbl again as global oil glut made it more difficult for oil producers to balance the market by cutting output.

In the analysis, Goldman Sachs stated that the global oil market is on track to test storage limits in as little as three weeks, and it would take up to 20% daily cut of global output or around 18 million bpd, according to Goldman Sachs estimation, to prevent that.