U.S. Markets Book Slight Profits Ahead Of Janet Yellen’s Speech

U.S. Markets Book Slight Profits Ahead Of Janet Yellen’s Speech

After closing the previous session lower, U.S. equities indicated a positive opening today. During pre-market hours, S&P 500 Index (INDEXCBOE:SPX) Futures surged 0.05% to 2,098.75 and Nasdaq (INDEXNASDAQ:NDX) Futures gained 0.09% to 4,513.25.

Yellen’s speech critical for markets

Federal Reserve Chair, Janet Yellen’s, comments later today will be key to traders, particularly after last week’s disappointing employment report, to gauge the possibility of next rate hike in the U.S. Markets in Asia finished lower as traders appeared wary over the economic pace in China ahead of a flurry of reports. However, European markets were buoyant as diminished expectations of an early rate hike coupled with rebound in oil prices helped to build up outlook in the region.

Meanwhile, looming Brexit polls contributed to weakness in the Pound. With just weeks left to a final referendum, two of the critical recent polls suggest majority shifting towards Brexit. 45% of Britons now support Britain’s Exit from the European Union versus 41%, who are opposing Brexit.

Dollar bounces back

In other currencies, U.S. Dollar (CURRENCY:USD) managed to swing into green zone after making three-week lows on Friday. Disheartening employment data released last week was responsible for erosion of gains in greenback.

On the commodities front, iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) bounced back to $50 a barrel level. Fresh attacks in Nigeria leading up to supply disruptions is favoring demand side. The Niger Delta Avengers militant group was responsible for three attacks against Nigeria’s oil infrastructure this past weekend, which has created circumstances of zero output from the region.

On the other hand, sluggish jobs data in the U.S. has also been a reason for resiliency in SPDR Gold Trust (ETF) (NYSEARCA:GLD) and other commodities. Bullion touched multi-week highs today after market factored in growing possibilities of a delayed monetary tightening.