Higher Opening Likely For US Markets; Oil Up

Higher opening likely for the U. S markets Tuesday after main stock index futures surged in the morning.

Investors shifted their focus to bond markets for signals on the economy after the recent inversion in curve yield after a decade triggered panic about a recession.

At 5:50 a.m. ET, Dow futures were up and hinted a positive open of more than 130 points. Futures on the S&P and the Nasdaq also stood higher.

On Monday, marginal gains graced Wall Street. Robert Mueller’s probe almost absolving President Donald Trump on the collusion charge with Russia during the 2016 presidential race, cheered the markets as investors are hoping Trump will start sealing trade deals. However, looming concerns on global economic slowdown have checked higher market gains.

Investors are watching the bond market for cues. On the data front, housing starts and building permits will come at 8.30 a.m. ET.

The consumer confidence figures and the Richmond Fed surveys will be out by 10 a.m. ET. Carnival and KB Home will release their latest earnings.

Oil price inches up

Oil prices moved up Tuesday, lifted by supply cuts of producer club OPEC and sanctions on oil producers Iran and Venezuela by the United States.

However, signs of an economic slowdown kept the markets tight and blocked further price escalation.

Brent crude oil futures rose to $67.33 per barrel at 0416 GMT, up 0.2 percent, from their last close.

U.S. West Texas Intermediate (WTI) futures also soared 0.8 percent at $59.26 per barrel, from their last settlement.

Deliberate supply cut to sustain good prices has been the strategy of OPEC and allies like Russia. They are withholding around 1.2 million barrels per day (BPD) from supply to prop up markets.

Gold slips

Gold slipped on Tuesday after recovery in share markets and U.S. Treasury yields diminished the appeal of the precious metal.

Spot gold fell 0.2 percent at $1,319.86 per ounce as of 0426 GMT, after hitting its highest at $1,324.33 in the previous session, since Feb. 28.

The U.S. gold futures also fell by 0.2 percent at $1,319.80 an ounce. Gold gained 3 percent this year on the back of dovish Fed and rising concerns over the global economic slowdown.

Asian stocks up

The Asian markets showed a revival. Japan markets bounced back on Tuesday after posting heavy losses on the previous day abetted by concerns on the global economy.

On Tuesday, Nikkei 225 soared 2.15 percent while the Topix added 2.57 percent. In China, the Shanghai composite slipped 1.51 percent while the Shenzhen component plunged 1.94 percent.

Hong Kong’s Hang Seng index too slipped 0.19 percent. South Korea’s Kospi closed 0.18 percent higher while Australia’s ASX 200 moved up marginally. Europe’s European Euro Stoxx 600 Index jumped 0.1 percent in early deals with most sectors staying positive.