US stoks are set for a better open with tech stocks set to out perform after entering correction territory. US bond yields have eased for now but treasury auctions over the approaching days could dictate where yields go from here.

Tech rebounds


The Nasdaq futures are pointing to a solid rebound after tanking 2.4% within the previous session and falling into correction territory - closing quite 10% below its closing high on 12th February.


The recent rise in US 10 year bond yields have spoked investors out of high growth tech stocks which are particularly sensitive to rate of interest expectations.


However, 10 year treasury yields are easing today to 1.53%, down from 1.62% a fresh post pandemic high struck on Monday.




US treasury auctions


Where bond yields head next depends to a degree on the approaching days’ bond auctions and tomorrow’s inflation data due even as the Biden administration’s


The bond auctions begin with the three year today at 18:00. this may be followed by$38 billion of the ten year treasuries on Wednesday and $24 billion of the 30 year treasuries on Thursday.


Any hint of weak demand or a stronger than forecast CPI reading could see bond yields resume their ascent.




Stocks set to open higher


The easing of treasury yields, soothing words from central banks and intervention from Chinese authorities in China’s stock markets are underpinning equity demand.


The OECD has also upped the worldwide growth forecast to five .6% from 4.2% because of the US stimulus package.


Stocks in focus:


Zoom – trades +3.8% pre-market as tech rebounds and after regulatory filings revealed that founder Eris Yuan transferred 40% of his stake to unspecified beneficiaries last week.


GameStop - +9.8% pre-market and no stranger to big swings within the share price, after announcing that Chewy co founder Ryan Cohen a serious GameStop shareholder will lead plans to show around online sales.




FX – Euro recovers


US Dollar Index moving lower as US bond yields slip back. US Dollar index trades -0.25% at 92.00.


The Eurozone economy performed mildly better than expected within the final quarter of the year. The 3rd revision of Q4 GDP ticked higher to -4.9%, from 5% whilst the utilization component was also upwardly revised.


Plans to drastically build up the vaccine programme in Germany have also offered support to the common currency. The Eurozone as whole is well behind the likes of the US & UK in terms of vaccinations.Oil steady, base metals drop


Weakness in China overnight hit commodity prices. Base metals declined steeply, however oil showed some resilience climbing 1.3% higher within the European session. Those gains have since been pared. However, economies reopening, vaccine rollouts accelerating, and therefore the US stimulus package set for approval means the oil demand outlook remains supportive.


The weekly API inventory data are going to be released as was common at 21:30 UTC. Lat week saw the most important US crude repose on record due to the Texas freeze.


Base metals haven't fared so well with Copper hanging onto losses down -2.5% and iron still some 1.1% lower.


US crude trades -0.1% at $64.97


Brent trades +0.05% at $68.32