Lower Open Likely For US Markets: Oil Mixed

Lower open is expected for the U.S markets Wednesday after key stock index futures were down in the morning. Dow Jones Industrial Average (DJIA) futures indicated a negative open of more than 30 points at around 6 AM, ET.

Market participants are monitoring the bond markets as a barometer on recession concerns. The S&P 500 and Nasdaq Composite futures were also down.

On Tuesday, Wall Street's key indexes had gathered gains but finished below session highs as concerns about the economic outlook did not douse.

On Friday last, the yield on the 10-year U.S. Treasury bill fell below the three-month note, after more than a decade. An inverted yield is held an early indicator of an upcoming recession.

At the data front, January’s international trade figures will be out on Wednesday. The current account balance data of the fourth-quarter is also expected.

Latest quarterly results of Lennar, Paychex, Lululemon Athletica, PVH and Vale will be announced.

Oil price mixed

In the oil market, mixed trends prevailed on Wednesday with Brent maintaining the previous session's high. But higher gains were missed as fears of a global economic slowdown and compressed demand prevailed.

There was a 0.2 percent gain by Brent in per barrel price at $68.13 by 0706 GMT, shedding previous losses and coming very close to the year-to-date high of $68.69 clocked last week.

The American oil benchmark U.S. crude futures shed 3 cents at $59.91 but stayed positive for the most part of the session. In the previous session, it jumped 1.9 percent.

“We seem to have reached a state of equilibrium after the recent headline-driven choppy trading and need some impetus for price direction,” said Jeff Halley, the analyst at OANDA in Singapore.

Oil prices have appreciated more than 25 percent so far in 2019 backed by OPEC’s supply cuts and U.S. sanctions on oil exports from Venezuela and Iran.

China stocks up, Japan down

Stocks in Asia showed mixed trends on Wednesday after investor concerns soared on the global economy.

Japan’s Nikkei 225 declined 0.23 percent. Topix index fell 0.52 percent. South Korea’s Kospi slipped 0.15 percent. However, Australia’s ASX 200 rose marginally.

In mainland China, Wednesday saw markets making gains. The Shanghai Composite added 0.85 percent and the Shenzhen component jumped 1.01 percent. Hong Kong's Hang Seng index gained 0.6 percent in the last leg of trading.

European stocks came under pressure on Wednesday after investors were swayed by fears of a potential U.S. recession.

The pan-European Stoxx 600 index was down below the flat line in the morning with most sectors swinging in opposite directions.