U.S. stock index futures point to a positive start to trading

U.S. stock index futures are aiming for a positive open on August 21 (ES00: +0.54%), although they may still end the week overall in negative territory, as rising government bond yields and geopolitical tensions have reduced investors’ risk appetite.

Yields on long-term U.S. Treasuries remain elevated despite the Treasury Department’s Wednesday announcement of an increase in securities buyback volumes. The U.S. dollar weakened against major global currencies. The euro meanwhile rose to a three-month high. The European currency was supported by eurozone purchasing managers’ surveys, which indicate the economy’s relative resilience amid high energy prices.

Oil prices paused their rally, but may still post a weekly gain of about 5% after President Trump promised to take radical measures aimed at further isolating Iran’s economy. The October WTI crude oil futures contract is at $86.85 per barrel (0%).

Gold prices are near a three-month high, up about 4% for the week, and preparing to log a third straight weekly gain. The December gold futures contract is near $4629 per ounce (+1.27%).