U.S. Markets Add Gains During Pre-Market Trade

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U.S. stocks are prepped for a positive session today, in line with global counterparts. S&P 500 Futures (INDEXCBOE:SPX) rose 0.25% to 2,043.75 and Nasdaq Futures (INDEXNASDAQ:NDX) added up 0.32% to 4,331 during pre-market hours.

Markets calm down

Global equities bounced back today after traders digested the prospects of an early rate hike by the Federal Reserve. Major indices in both Asia and Europe advanced, shrugging off concerns of a looming monetary tightening environment. Economic data released in Germany showed that residential building permits jumped by a third to more than 84,000 in the first-quarter of 2016. This data added the expectations that construction will continue to boost Germany’s growth, which is Europe’s largest economy.

Meanwhile, oil also lent support to rising equities. Several new updates about continued oil supply disruption overcame concerns of a supply glut, helping the commodity to move closer to $50 per barrel.

Supply outages from Nigeria increased after reports surfaced that intruders have blocked routes to Qua Iboe, which is operated by Exxon Mobil Corporation (NYSE:XOM). Also, problems in Libya and Venezuela alongside bankruptcies reported by shale producers in the U.S. have all helped drive up prices.

Gold near three-week lows

Meanwhile gold prices and the corresponding SPDR Gold Trust (ETF) (NYSEARCA:GLD) were more or less steady, maintaining near three-week lows. Increased prospects of a U.S. rate hike by as early as June and a stronger U.S. Dollar (CURRENCY:USD) continued to dampen the outlook for the safe haven asset. Gold Futures for June delivery were seen trading at $1,255.35.

The FOMC meeting minutes of the Federal Reserve released earlier this week sent out strong signals of an imminent rate hike while several Fed officials also embraced a hawkish outlook. These comments pushed the dollar higher to a seven-week high against major currencies.

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