U.S. Futures opened slightly higher today as the direction of the European equities, the Federal Reserve Members’ comments and oil will remain the center of focus for the markets today. Both Dow Jones and the S&P 500 ended the previous week on a positive note, marking the fifth week of advancement for the U.S. markets.
During the early hours, S&P 500 Futures rose 0.07% to 2,039 while Nasdaq Futures gained 0.11% to 4,399.38. The overall sentiment remained positive as Fed’s President, Jeffrey Lacker, noted that the inflation in the U.S. is likely to increase during the coming years and will be able to meet the central bank’s target of 2% once the oil prices reach their bottom.
Apart from this, the market participants will hear more updates from a number of Fed members later today. Atlanta Fed President Dennis Lockhart and St. Louis Fed President James Bullard will present their thoughts on the economic outlook, monetary policy and economic inequality today.
Oil and Dollar
Meanwhile, the market will closely track the direction of oil, which is yet again heading south. The addition of rigs by the U.S. oil producers as well as the lack of any new information about output freeze from the OPEC has made investors wary about the commodity. Brent Crude was trading above $41 per barrel while the West Texas Intermediate hovered near $39 per barrel.
Both Asian and European markets oscillated between small losses and gains as the volatility in the currency markets, and oil kept the investors on their toes. China’s index Shanghai touched a two-month high after the government embraced leniency on brokerages, which lend to investors for buying stocks. However, both the Asian and European equities traded mostly in green. Increased political uncertainty over the Brexit issue continued to weigh on the European stocks.
The trading in safe assets such as Gold remains muted as the Dollar maintained resilience against the commodity.