The early trading signs in the U.S. futures market are pointing to a positive opening today. S&P 500 Futures are seen 1.26% up at 1,881.75 while Nasdaq Futures have added 66.62 points to 4,072.88. However, oil price movement and sentiment in the European markets could dictate the direction ahead in the day.
Amongst the key features that will weigh on the market will be the outcome of the meet between oil majors – Russia, Saudi Arabia, Qatar And Venezuela. Though the meeting did not conclude in line with the market expectations yet the event is branded as a big policy change by the analysts. The four nations have agreed to halt their output rate at January levels, which is not promising but still seen as a co-ordinated effort for the first time since oil prices tanked. Oil prices were seen retreating from its highs, in response to the meeting.
Asian market up but Europe down
Around the world, Asian markets finished the day with positive momentum, but European markets found it difficult to follow the suit on account of fading prospects of continued oil rally. At the same time, weak German economic sentiment data worsened the outlook for the economy. As per reports, economic sentiment in Germany fell to 15-month lows. The ZEW indicator of economic expectations dipped to 1.0 from 10.2 month-on-month, below expectations of a drop to 3.2 reading.
On the other hand, data came as expected in the U.K., where consumer price inflation grew 0.3% in January versus 0.2% in December. The data is at par with the expectations and signalled modest price growth.
Meanwhile, there was some weakness in Gold Futures, which touched a level below $1,200 for a short period, before returning to above that level. The yellow metal had soared to a one-year high last week after investors dumped equities to rush to accumulate safe assets. Overall the demand for gold remains stable as the investors are unsure of the direction of the global economy.