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Oil And Global Optimism May Drive U.S. Equities Higher

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The U.S. Stock Futures are hinting at a higher opening for the U.S. equities. The initial trading session finds S&P 500 INDEX (INDEXCBOE:SPX) Futures up by 0.61% at 2,066.75 while NASDAQ (INDEXNASDAQ:NDX) Futures rose 0.58% to 4,360.88.

Oil prices rebound again

The bounce back in iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) prices today has lent out a supporting hand in keeping the equities’ outlook boosted. The oil rallied higher during the European trade as the halt of supplies from Canada due to wildfire has cooled down the concerns about the looming supply glut. Moreover, the traders are awaiting the release of U.S. crude stockpiles data later today.

At the same time, the optimism in the oil market was further driven by the comments of the Qatari oil minister, who said that the crude prices should rebalance in the second half of this year.

Light economic calendar

Besides this, analysts remained divided over the easing measures to be adopted by Chinese officials after the release of the inflation numbers. China posted modest inflation number in April while its producer prices signaled at contained deflationary pressures.

Global equities more or less traded higher with Nikkei 225 (INDEXNIKKEI:NI225) and EURONEXT 100 (INDEXEURO:N100) posting the biggest gains for the day. In the absence of any key economic data release, the markets are expected to pay attention to the job openings report for March. Apart from this, the traders will also focus on the March wholesale inventories to be released today.

Another event that might hold importance for the markets is the higher chances of debt relief to be provided to Athens with conditions. However, Eurozone finance minsters are yet to come up with a final decision. The speculation received a positive response from the investors as Greek 10-year bond yield dived below 8% for the first time in the last five months.

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