U.S. futures down as investors weighed risks to global growth ahead of a key U.S. employment report. At the end of the trading day on Tuesday, stock closed high after the selloff on Monday. Dow Jones index stands at 0.92% increase, the S&P 500 with a rise by 1.05% and the Nasdaq similar rises by 1.25%. Treasury yields extended an advance as the 10-year treasury at 1.55% after a three-basis point increase, surged by rising oil prices after OPEC stuck to its crude production plans.
Asian markets struggled at open this morning, after Tuesday’s retreat on worries of rising inflation and a tighter monetary policy to a possible US debt default. Japan’s Nikkei is down by 1.1%, extending losses into the seventh session as higher oil prices threaten inflation, corporate profits and reduce the pace of the global economic recovery, whilst the new Japanese prime minister proposes to raise capital gains tax. Hong King’s Hang Seng fell by 0.3%. Shanghai composite is closed for a holiday.
The FTSE 100 posted gains of 1% on Tuesday as a rally in financials and energy companies lifted the index. Germany stocks were higher after the close on Tuesday, as gains in the Technology, Utilities and Retail sectors led shares higher. At the close in Paris, the CAC 40 gained 1.52%, while the SBF 120 index added 1.37%, as gains in the Foods & Drugs, Gas & Water and General Financial sectors led shares higher. European stock markets are expected to open sharply lower Wednesday on concerns high inflation, fed by increasing energy costs, will result in slowing economic growth just as central banks start to remove their monetary support.
Oil was down Thursday morning in Asia, continuing its downward trends as the latest, official data confirmed a build in U.S. crude supplies. Brent oil futures edged down 0.18% to $77.95 and WTI futures inched down 0.03% to $74.81. Both Brent and WTI futures recorded small gains earlier in the session, however. After two days of price losses, some investors could be looking for the next barrier to breach after Brent futures climbed above the $80 mark for the first time in around three years on Tuesday.