Pre Stock Market News: Higher Open Likely For US Markets, Oil Up

Higher open likely for the U.S markets Wednesday after the main equity gauges looked up Wednesday morning.

At around 04:10 a.m. ET, Dow futures jumped 59 points, indicating a positive open of more than 37 points. Futures on the S&P and Nasdaq were also up.

After the dismal Tuesday, Wall Street investors’ focus shifted to trade relations between China and the U.S. 

Beijing on Wednesday exempted some U.S made products from the tariffs list. Overall, 16 American products were removed from the ambit of additional tariffs.

China reportedly offered to increase the purchase of U.S. agricultural goods in exchange for delaying new tariffs and also wanted the easing of supply ban on Huawei Technologies.

At the data front, investors will see new PPI data at 8:30 a.m. ET. The wholesale trade figures will be out at 10:00 a.m. ET.

On the earnings front, Aurora Cannabis and Tailored Brands will report the latest earnings.

European stocks jumped Wednesday morning as investors looked ahead to ECB meetings. In the stock market, the pan-European Stoxx 600 rose 0.4 percent.

Oil price jumps

Oil prices jumped on Wednesday after an industry report said the U.S. crude stockpiles fell last week, double the volumes that analysts had forecast in a Reuters poll.

Brent crude futures surged 0.6 percent to $62.89 a barrel by 0405 GMT, while West Texas Intermediate (WTI) futures rose 0.9 percent to $57.94 a barrel.

Oil prices had softened on Tuesday after speculation mounted that sanctions-hit Iranian crude would return to the market after President Donald Trump removed his national security adviser John Bolton, considered an Iran policy hawk.

 “Oil should remain supported in Asian trading, mostly supported by the overnight API crude inventory data,” said Jeffrey Halley, senior market analyst at Oanda.

Asian stocks mixed

The markets in Asia had a mixed trading day on Wednesday according to Stock market news, after investors looked for the European central bank’s interest rate decision on Thursday.

Mainland Chinese shares fell; the Shanghai Composite shed 0.41 percent but Hong Kong’s Hang Seng index jumped 1.51 percent.

Japan’s Nikkei 225 surged 0.96 percent while the Topix gained 1.65 percent.  

Traders work on the floor of the New York Stock Exchange (NYSE) on March 11, 2019 in New York City. Photo: Photo by Spencer Platt/Getty Images

South Korea’s Kospi closed 0.84 percent and in Australia, the ASX 200 jumped 0.36 percent.

“The European Central Bank Governing Council is likely to cement a dovish path until at least the end of 2020, when they meet on Thursday,” analysts DBS Group Research said in a note.

Indian shares ended higher Wednesday. The 30-share BSE Sensex was up 0.34 percent while the broader Nifty50 index jumped 0.30 percent or 33 points.

Gold prices rose on Wednesday as expectations jumped over European Central Bank recommending some stimulus and rate cut.

Spot gold jumped 0.3 percent at $1,490.27 per ounce, as of 0732 GMT. The U.S. gold futures also edged up 0.2 percent at $1,502.2 an ounce.