Based on the cues from the U.S. Futures Market, it appears that the equity market is set to open lower today. During the early trading hours, S&P 500 INDEX (INDEXCBOE:SPX) Futures had drifted lower by 0.10% to 2,070.50 while Dow Jones Industrial Average (INDEXDJX:.DJI) Futures had trimmed 0.21% to 4,373.
The U.S. equities are likely to reflect the broader equity sentiment across the globe. Asian equities edged lower after the Bank of Japan defied market expectations by keeping its interest rates static. It was widely anticipated that the Japan’s Central Bank will embrace stimulus measures to help the economy. Except Australia’s ASC, all the Asian indices closed on a negative note, hurt by Japan’s surprise decision.
The weakness in the Asian equities was reflective across the European bourses as well with major stock indices trading negative.However, there was some relief on the data front as the euro zone’s economy registered expansion in the last quarter, at a faster pace than anticipated. Eurostat stated that the Gross Domestic Product (GDP) in the eurozone rose 0.6% during the first quarter, substantially high from 0.3% recorded in the last quarter ended in December. The number surpassed the economists’ expectations of 0.4% growth. On a year-on-year basis, the euro zone’s GDP surged 1.6% in the first quarter, higher than the expectations of 1.4%.
Economic data to be released
Up ahead in the day, the market participants will stay tuned to the data to be released on personal spending, employment costs, and consumer sentiment. A report released by the Bureau of Economic Analysis yesterday indicated that the U.S. economic growth stalled to a yearly rate of 0.5% against the expansion of 1.4% in the fourth quarter of 2015. Meanwhile, the Department of Labor noted a decline in jobless claims by 9,000 to 257,000 during the week ended on April 23. 2016.