Moderate Open Likely For US Markets: Oil Up

Moderate open likely for the U.S markets Tuesday after the U.S. stock index futures moved up marginally on Tuesday morning.

Trade worries continue to weigh on investors and capping more gains.

At around 04:00 a.m. ET, Dow futures jumped 22 points, indicating a positive open of more than 57 points. Futures on the S&P and Nasdaq were also up.

At the trade war front, President Donald Trump said the U.S. is “not ready” for a deal with China although he expects a pact in the future.

Among data, the S&P/Case-Shiller home prices index (HPI) and the Federal Housing Finance Agency HPI for March will be out at 9:00 a.m. ET.

Data on consumer confidence, Richmond Fed surveys and Dallas Fed manufacturing for May are expected during the session. Latest quarterly results from Bank of Nova Scotia and Booz Allen Hamilton will also be released.

Asian markets up

Asian stock markets traded higher on Tuesday. President Donald Trump’s state visit to Japan raised hopes on a U.S. trade deal with Japan and improved market sentiments in the Asia Pacific.

Japan’s Nikkei 225 moved up 0.37 percent while the Topix jumped 0.26 percent. South Korea’s Kospi was up by 0.23 percent and Australia’s ASX 200 advanced 0.51 percent.

Chinese stocks jumped Tuesday with the Shanghai Composite adding 0.61 percent. Hong Kong’s Hang Seng index also inched up 0.2 percent higher at the final hour of trading.

Trump’s Japan journey came in the backdrop of the protracted trade war between Washington and Beijing.

“I think the market ... has already started to price in that the tension would be protracted,” said Eugenia Victorino, head of Asia strategy at SEB.

In Europe, the pan-European Stoxx 600 fell 0.3 percent on Tuesday morning deals with most sectors moving to negative territory. At the data front, German consumer sentiment showed a slide to the lowest in two years.

Oil price jumps

Oil prices jumped on Tuesday as concerns of tighter global supplies overwhelmed worries on demand from the U.S.-Chinese trade war.

Brent crude jumped 19 cents to hit $70.30 a barrel by 0930 GMT, while U.S. West Texas Intermediate (WTI) added 50 cents or 0.9 percent to $59.13 per barrel.

Supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allies along with simmering political tensions in the Middle East have been pushing prices.

“Brent is likely to resume its upward trend in line with its fundamentals, which are tight,” commented Harry Tchilinguirian, global oil strategist at BNP Paribas in London.

The United States’ sanctions on oil exports of Venezuela and Iran also tightened the supply scene.

Gold slips

Gold prices fell on Tuesday following the surge of the dollar from multi-week lows as trade tensions lingered.

Spot gold fell 0.2 percent at $1,282.86 per ounce, at 0702 GMT. The U.S. gold futures were also down by 0.1 percent at $1,281.80 an ounce.

“Gold is set to improve and trend toward $1,300,” analysts with TD Securities said. They also noted that ripe market conditions such as lower rates, a flat yield curve and chances of higher volatility in equity markets could support gold.