Greater Open Seemingly For US Markets: Oil Up

Higher open likely for U.S markets Tuesday as stock index futures traded better in the morning.

At 3:00 a.m. ET, Dow futures soared more than 50 points,  holding the scope for a higher open of 71 points. Futures for the S&P 500 and Nasdaq also stood high.

It is probable that Wall Street may sustain the gains made on Monday reinforced by positive cues from the Brexit deal as well. With EU making some legally palatable changes to the deal, U.K, Prime Minister Theresa May’s chances of winning the crucial vote on Tuesday has brightened.

Despite the market’s somber mood from the crash of Boeing shares on Monday, strong retail data and tech rally in Apple and Facebook stocks enthused the market.

At the U.S data front, investors will see the release of the NFIB survey and inflation numbers. Dick’s Sporting Goods and Switch will be reporting their earnings Tuesday.

Oil up

Oil prices jumped on Tuesday fed by healthy demand outlook and output cuts by producer club OPEC. The U.S. West Texas Intermediate (WTI) crude oil futures soared to $56.97 per barrel at 0054 GMT, up 0.3 percent, from their last settlement.

Brent crude futures moved to $66.75 per barrel, up 0.3 percent.

“Despite economic headwinds, we still see Brent prices averaging $70 per barrel this year and expect WTI to lag, averaging $59 per barrel in 2019,” said a note by Bank of America Merrill Lynch.

European stocks rally

European stocks soared on Monday as traders looked for the crucial Brexit vote in the U.K.

The pan-European Stoxx 600 index jumped 0.76 percent with most sectors staying in the positive region. Banks sector traded 1.5 percent higher. News of Commerzbank and Deutsche Bank in merger talks strengthened the stocks. The German government owns a 15 percent stake in Commerzbank.

Asian shares also surged Tuesday after news of U.S. stocks recovery and Pound’s jump on the eve of Brexit vote. 

In Japan, the Nikkei 225 rose 1.79 percent while broader Topix moved up 1.52 percent. The Shanghai Composite jumped 1 percent and the Shenzhen composite soared 1.67 percent. Hong Kong’s Hang Seng index was high by 1.44 percent during the final hours. South Korea’s Kospi traded higher by 0.89 percent. Australia, the ASX 200 also soared but declined 0.09 percent at the end.

Gold jumps

Gold prices surged on Tuesday after the U.S dollar weakened against the Pound as the UK’s Brexit deal’s acceptance brightened.

Spot gold moved 0.1 percent high to $1,294.90 per ounce at 0756 GMT, while U.S. gold futures soared 0.3 percent to $1,294.70 an ounce.

The dollar’s slump made gold an attractive investment for non-U.S. currency holders.   “There was a bit of movement out of the U.S. dollar which lifted gold slightly,” commented Kyle Rodda, an analyst with Melbourne’s IG Markets. 

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