Like Asian and European counterparts, todays trading session is likely to be a tough ride for the U.S. markets. This outlook can find its support from the direction of the U.S. stock futures during the early trading session.
Oil prices leading the fall
Both S&P 500 (INDEXCBOE:SPX) Futures and NASDAQ (INDEXNASDAQ:NDX) Futures are down by roughly 0.24% to 2,072.75 and 4,382 respectively. The key contributing factor that is impacting the markets around the globe is iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL)’s price fall.
The commodity is back near $44 per barrel after the American Petroleum Institute noted that the U.S. crude inventories added stocks at a higher rate than anticipated. The report has once again fuelled concerns over the building supply glut weighing over the supply cut from Canadian mines. The traders are not awaiting an official report from the U.S. Energy Information Administration to gauge the true picture of the U.S. stockpiles.
U.K. manufacturing output worsens
The weakness in oil leaked into the global equities as well, which mostly struggled to hold on to their previous session’s gains. While most of the Asian equities ended in red, the European stocks too opened on a negative not. In U.K., the manufacturing output recorded the biggest fall in March during the last three years. The Office for National Statistics reported that the reading in March came 1.9% lower year-over-year, reflecting the steepest decline.
At the same time, the six-day long rally in the U.S. Dollar (CURRENCY:USD) came to a halt today as Forex traders preferred to book their profits. The dollar dipped below the 109 level against the Japanese Yen in response to Japanese government’s intervention clues. Weakness in the dollar helped rally in commodities as Gold added gains to trade back near $1,274 level.