Mixed Open Likely For US Markets: Oil Steady

Mixed open likely for the U.S markets Tuesday after key stock market futures showed subdued signals in the morning.

At 4.20 a.m. ET, Dow Jones futures were up 4 points hinting a negative open of 5 points, while the S&P 500 and Nasdaq were barely up.

As part of the earnings season, Tuesday morning will see earnings reports from leading American companies.

Banking sector giants J.P. Morgan Chase, Goldman Sachs, and Wells Fargo will be reporting earnings before the bell.

Other big companies will include Johnson & Johnson and Domino’s Pizza. After the market hours, United Airlines and CSX will reveal their earnings.

Overall the outlook for earnings season is bleak, according to CNBC. On the data side, investors will get to see the U.S. industrial production data and U.S retail sales data for June on Tuesday.

Europe’s pan-European Stoxx 600 was below the flatline. Market players are waiting for the results of major companies.

Oil prices firm

Oil prices were almost steady on Tuesday after the dip in the previous session. Brent crude futures gained 0.1 percent at $66.55 a barrel by 0426 GMT after the dropping in the previous session. The U.S. West Texas Intermediate crude futures added just one cent to $59.59. It fell one percent in the previous session.

The oil production in the U.S. Gulf of Mexico platforms shut by the threat of Hurricane Barry has been restored in almost three-quarters of the output.

On the oil demand outlook, analysts say the rising supply of U.S shale will keep demand muted despite the efforts of OPEC and allies to sustain production cuts.

“On the one hand you have the OPEC output cuts and there are some geopolitical issues around Iran. But the demand outlook is muted and U.S. supply is perennially good from shale oil, which seems to have structurally changed the nature of the oil market,” said Phin Ziebell, senior economist at National Australia Bank.

Asian markets mixed

Stocks in Asia were mixed Tuesday. China’s Shanghai Composite slipped 0.16 percent while Hong Kong’s Hang Seng index jumped 0.1 percent.

Japan’s Nikkei 225 slipped 0.69 percent while the Topix index shed 0.48 percent. Australia’s benchmark ASX 200 slid 0.18 percent.

Gold prices stood steady on Tuesday as investors awaited cues from U.S. retail sales data to get indications on the strength of the U.S. economy.

Spot gold was flat at $1,413.68 per ounce, as of 0734 GMT.

The U.S. gold futures slightly jumped 0.2 percent at $1,415.80 an ounce.

“Today we are getting neutralized because we are heading into retail sales tonight. Investors are positioning knowing well about a knee-jerk reaction if retail sales numbers come out strong,” commented Stephen Innes, managing partner, Vanguard Markets.

According to Innes, more than the retail sales data the Fed narrative that will add big swings to gold prices.