Higher Open Likely For US Markets, Oil Down

Higher open likely for the U.S markets Friday after the U.S. stock index futures moved up in the morning.

Dow futures, in the morning, indicated a higher open of more than 51 points. Futures on the S&P 500 and Nasdaq were marginally up. The expectations around the upcoming jobs data seem to have lifted the market sentiments.

On Thursday, Wall Street had closed lower as interest rates puzzle rattled markets. Comments by the Federal Reserve Chairman Jerome Powell on Wednesday that low inflation pressures may be “transitory,” and a rate cut is not on the horizon, pulled the stocks lower.

But Friday’s focus will be mostly data including nonfarm payrolls, unemployment data, and average hourly wages. Services PMI data will be coming at 9:45 a.m. ET. Fiat Chrysler will report its earnings.

Oil slips

Oil prices slipped Friday after the U.S. output surged and speculations mounted on higher supply from the Organization of the Petroleum Exporting Countries (OPEC) and that affected oil markets.

Brent crude oil futures were down 37 cents and touched $70.38 per barrel at 0440 GMT, from their last close.

The U.S. West Texas Intermediate (WTI) crude futures fell 20 cents and price moved to $61.61 per barrel.

Brent is heading for a weekly fall of 2.5 percent, while WTI declined 2.6 percent so far.

“Oil prices have fallen as the pressure of record U.S. output levels continue to weigh,” said Mihir Kapadia, the CEO of Sun Global Investments.

Traders said falling oil prices also had a Russian effect after it started sending clean oil through a pipeline to Western Europe, following stoppage of imports by many EU states complaining contamination.

Poland released the strategic reserves to maintain the supply.

Asian stocks mixed

On Friday, stocks in the Asia Pacific showed mixed trends as markets digested and interpreted comments by the U.S. Federal Reserve Chairman Jerome Powell.

Now investors are awaiting the U.S. nonfarm payrolls or jobs data coming on Friday.

Hong Kong’s Hang Seng index was up 0.29 percent in afternoon trade. Markets in Japan and China are closed for holidays. South Korea’s Kospi declined 0.74 percent. Australia’s ASX 200 closed marginally lower.

European stocks jumped Friday morning after investors digested a new batch of corporate earnings and anticipated payrolls data in the U.S. The pan-European Stoxx 600 Index was 0.3 percent high during mid-morning trade, with most sectors in positive territory.

Friday’s official data showed euro zone inflation stronger-than-expected in April adding relief to the European Central Bank.

Gold falls to month low

Gold prices on Friday remained at the low touched in the previous session. The price crash followed the U.S. Federal Reserve’s stand that no rate cut is possible in the near term. The decision boosted the dollar and pulled down the bullion.

In the previous session, the yellow metal sunk to $1,265.85, the lowest since end-December.

No variations happened in spot gold at $1,271.25 per ounce, as of 0314 GMT. The U.S. gold futures were also steady at $1,272.20 an ounce.

Fed Chair Jerome Powell said on Wednesday that inflation risks highlighted during the U.S. GDP data were transitory and does not justify reworking of interest rates in the short term.

“An unwinding of excessively bullish positioning for a dovish Fed put a hammer on gold,” commented Jeffrey Halley, a senior market analyst with Oanda.