Higher Open Likely For US Markets: Oil Up

Higher open expected for the U.S stock markets Friday. The U.S. stock market futures jumped on Friday morning buoyed by the sustained rally on Wall Street.

Rising hopes over a deal between the U.S. and Mexico on tariff imbroglio plus expectations on the upcoming non-farm payrolls data energized market sentiments.

At 7 a.m. ET, Dow Jones futures hinted a positive open of 106 points. Futures on the S&P 500 and Nasdaq futures were also high.

On the data front, monthly jobs data followed by April’s wholesale trade data and consumer credit figures are expected.

The jobs data, coming at 8:30 a.m. ET will catalyze the stock market live.

According to CNBC, the real numbers could be a determiner in influencing the current thinking of the U.S. Federal Reserve on interest rates.

On jobs, Reuter’s poll of economists forecasts that the U.S. would have added 180,000 jobs in May.

Markets are monitoring the ongoing talks between Mexico and the U.S after reports said the U.S. may delay the 5 percent tariff proposed on Mexican imports effective from Monday.

Asian shares rise

Stocks in Asia jumped Friday taking cues from the progress in U.S.-Mexico negotiations and comments of European Central Bank President Mario Draghi detailing plans to defer the first post-crisis interest rate hike until the middle of next year.

Japan’s Nikkei 225 rose 0.53 percent while the Topix index advanced 0.49 percent. Australia’s ASX 200 gained 0.95 percent and the Kospi in South Korea added 0.16 percent.

Markets in China and Hong Kong were on a holiday.

European stocks traded higher Friday with pan-European Stoxx 600 climbing 0.8 percent in the morning session. Investors digested global trade developments and comments of major central bank chiefs including the U.S Fed and European Central Bank.

Oil price jumps

Oil price jumped more than 2 percent on Friday, recovering from five-month lows. The triggers included signs that OPEC and other producers will continue with the production cuts aimed at supply compression since the start of this year.

Benchmark Brent crude futures jumped $1.35 to hit $63.02 a barrel by 0757 GMT. The U.S. West Texas Intermediate (WTI) crude futures jumped $1.10 at $53.69 per barrel. Both grades are heading for the strongest daily rise since late April.

The oil price had a boost after Saudi Energy Minister Khalid al-Falih told a meet in St. Petersburg of Russia that the $60 a barrel was a pittance to encourage any investment in the oil industry.

Falih said Saudi will not boost production to earn a lower oil price as in 2014-15.

However, President Vladimir Putin said Russia had differences with OPEC on what makes a fair oil price. He assured support to OPEC members in working out a consensus policy in the coming weeks.

Gold price up

Gold had the best week in June after March 2018. On Friday prices stood unchanged.

Gold was able to gain 2.3 percent this week and is on track for its best week since the week that closed on March 23, 2018.

The bull-run in the gold market was fuelled by rising expectations for a U.S. rate cut and concerns that trade tension would curtail global growth.

Jointly, they fuelled the appetite for safe-haven bullion. Spot gold stood steady at $1,335.27 per ounce at 0902 GMT, while U.S. gold futures fell 0.2 percent to $1,339.60.

“We have had quite a move higher earlier this week, but we are moving towards levels where the market will struggle to go much higher,” ING analyst Warren Patterson said.