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Futures Pointing To Modestly Higher Open On Wall Street
US Market
The major U.S. index futures are currently pointing to modestly higher on Tuesday, with stocks likely to move to the upside after ending yesterday’s choppy trading session little changed.
Early buying interest may be generated in reaction to a pullback by treasury yields, which moved notably higher over the two previous sessions.
The yield on the benchmark ten-year note is giving back ground after ending Monday’s trading at its highest closing level in over four months.
Trading activity is likely to remain relatively subdued, however, with a lack of major U.S. economic data likely to keep traders on the sidelines ahead of the release of key inflation data in the coming days.
The Labor Department is scheduled to release its reports on consumer and producer inflation in the month of March on Wednesday and Thursday, respectively.
Economists currently expect consumer prices to rise by 0.3 percent in March following a 0.4 percent increase in February.
Core consumer prices, which exclude food and energy prices, are also expected to climb by 0.3 percent in March after rising by 0.4 percent in February.
The annual rate of consumer price growth is expected to accelerate to 3.4 percent in March from 3.2 percent in February, while the annual rate of core consumer price growth is expected to slow to 3.7 percent for 3.8 percent.
Producer prices are expected to rise by 0.3 percent in March after climbing by 0.6 percent in February, while the annual rate of producer growth is expected to jump to 2.3 percent from 1.6 percent.
The inflation data could have a significant impact on the outlook for interest rates, as Federal Reserve officials have repeatedly said they need greater confidence inflation is slowing before cutting rates.
Wednesday will also see the release of the minutes of the Fed’s latest monetary policy meeting, which could also shed additional light on officials’ thinking on rates.
Following the substantial volatility seen over the final two sessions of the previous week, stocks turned in a relatively lackluster performance during trading on Monday. The major averages spent the day bouncing back and forth across the unchanged line before eventually closing narrowly mixed.
While the Nasdaq crept up 5.44 points or less than a tenth of a percent to 16,253.96, the Dow edged down 11.24 points or less than a tenth of a percent to 38,892.80 and the S&P 500 slipped 1.95 points or less than a tenth of a percent to 5,202.39.
The choppy trading on the day came as traders seemed reluctant to make significant moves ahead of the release of closely watched inflation data later in the week.
Some investors may also have been away from their desks as they traveled to other parts of the country to get a better view of today’s total solar eclipse.
Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.
Airline stocks showed a strong move to the upside, however, with the NYSE Arca Airline Index jumping by 1.8 percent.
Significant strength was also visible among steel stocks, as reflected by the 1.8 percent gain posted y the NYSE Arca Steel Index.
Banking stocks also turned in a strong performance on the day, while gold stocks gave back ground following recent strength.
U.S. Economic Reports
The Treasury Department is scheduled to announce the results of this month’s auction of $58 billion worth of three-year notes at 1 pm ET.
Europe
European stocks are turning in a mixed performance on Tuesday as geopolitical tensions persist and two more Federal Reserve officials warned that it’s premature to consider cutting interest rates.
However, former Federal Reserve Bank of St. Louis President James Bullard said in an interview with Bloomberg TV that he’s expecting three interest rate cuts this year and that’s the base case.
U.S. inflation data and the release of Fed meeting minutes this week are expected to provide additional clues on the Fed’s rate trajectory.
Investors also looked ahead to Thursday’s ECB meeting for clues on when it will begin cutting interest rates.
While the U.K.’s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index is down by 0.3 percent and the German DAX Index is down by 0.6 percent.
Miners have rallied as Shanghai copper prices surged to record highs on optimism around positive factory data out of major economies.
BP Plc shares have also jumped after the oil major said it expects to report a strong performance from its trading business for the first quarter.
Nordex SE, a German wind turbine maker, has also rallied after receiving orders to supply 295 MW wind turbines from EDF Renewables, South Africa.
HSBC Holdings has also risen. The lender said it would sell its Argentine banking business operations to Grupo Financiero Galicia in a deal worth $550 million.
On the other hand, struggling French IT consulting firm Atos has plunged after issuing an update on its financial restructuring plan.
UBS has moved slightly lower. According to Bloomberg News, the Swiss banking giant is contemplating whether to acquire complete ownership of its China platform by engaging in a stake swap deal with a Beijing government investment fund.
Siemens AG has also edged down slightly. The engineering and technology group said its supervisory Board extended the contract for President and Chief Executive Officer Roland Busch for five years from April 1, 2025.
On a light day on the economic front, France’s trade deficit decreased in February as exports rose faster than imports, data released by the customs office showed earlier today.
The trade deficit dropped more-than-expected to 5.2 billion euros in February from 7.2 billion euros in January. The shortfall was forecast to decrease to 7.0 billion euros. In the same period last year, the deficit totaled 8.9 billion euros.
Asia
Asian stocks turned in a mixed performance on Tuesday as ceasefire talks between Israel and Gaza stalled and more Federal Reserve officials warned about upside risks to inflation.
Amid much uncertainty about the interest rate outlook, investors looked ahead to crucial U.S. inflation data, the minutes of the Fed’s March policy meeting and the ECB rate decision for directional cues.
Upcoming earnings from U.S. banks JPMorgan, Wells Fargo and Citigroup also remained on investors’ radar.
China’s Shanghai Composite Index finished marginally higher at 3,048.54 ahead of key inflation and trade data due on Thursday and Friday, respectively.
Hong Kong’s Hang Seng Index climbed 0.6 percent to 16,828.07 after the city’s leader John Lee said authorities are considering more measures to boost the stock market.
Japanese shares rose sharply as the yen approached the 152-per-dollar level on speculation authorities will not act on the warnings of intervening in the currency markets.
The Nikkei 225 Index rallied 1.1 percent to 39,773.13, while the broader Topix Index settled 1.0 percent higher at 2,754.69.
Advantest rose 1.1 percent, Tokyo Electron jumped 3.5 percent and Screen Holdings climbed 2.5 percent after the U.S. government said it would provide up to $6.6 billion in direct funding to Taiwan Semiconductor Manufacturing Co., the world’s largest chipmaker, to assist the construction of factories in Arizona.
Seoul stocks closed lower amid caution ahead of parliamentary elections and the Bank of Korea’s rate decision. The Kospi slipped 0.5 percent to 2,705.16.
Australian markets closed higher, led by miners. Heavyweight BHP gained 2 percent and Rio Tinto jumped 3 percent as industrial metal prices extended gains on expectations of a worldwide manufacturing rebound.
The benchmark S&P ASX 200 Index rose 0.5 percent to 7,824.20, while the broader All Ordinaries Index closed up 0.5 percent at 8,081.20.
Investors shrugged off the results of a private survey showing that Australian consumer sentiment weakened further in early-April.
Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index fell 0.5 percent to 11,916.78.
Commodities
Crude oil futures are slipping $0.17 to $86.26 a barrel after falling $0.48 to $86.43 a barrel on Monday. Meanwhile, after rising $5.60 to $2,351 an ounce in the previous session, gold futures are climbing $14.10 to $2,365.10 an ounce.
On the currency front, the U.S. dollar is trading at 151.75 yen compared to the 151.82 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0875 compared to yesterday’s $1.0859.
