US Futures Signal Lower Open After Rally

US stock index futures pointed to a lower opening Wednesday after posting strong gains in the previous session.

Futures on the S&P 500 are down 0.16 percent, futures on the Dow Jones Industrial Average are down 0.09 percent and Nasdaq-100 futures are down 0.16 percent.

On Tuesday, All the three major benchmark indices surged more than 1.5 percent as sentiment was buoyed after successful Spanish debt auction and an upbeat global growth forecast from the International Monetary Fund (IMF). Better-than-expected results from major companies also added to the sentiment.

As no major economic data is due for release, investors are likely to focus on quarterly earnings. A string of companies including Halliburton, Freeport-McMoRan Copper and Abbott Laboratories will report their quarterly earnings before the markets open, while Yum! Brands, eBay, Qualcomm and Texas Instruments will report after the closing bell.

European stock markets scaled back after two days of gains as Eurozone debt worries continued to weigh on investor confidence. Markets are currently trading lower with FTSE 100 down by 17.72 points, DAX30 down by 46.92 points and CAC 40 down by 49.90 points.

Meanwhile, the minutes of the Bank of England (BOE) policy meeting showed that Adam Posen, one of the key members of the rate setting committee, has given up his long-standing call for further monetary stimulus as the prospects for the British economy is improving. The nine-member panel voted 8-1 in favour of keeping the key lending rate at a record low of 0.5 percent and to make no changes in its asset purchase program.

Earlier, Asian stock markets rallied on positive sentiment. Japanese benchmark Nikkei rallied 2.14 percent, Chinese Shanghai surged 1.96 percent and Hong Kong’s Hang Seng gained 1.06 percent. Tech and financial companies’ shares rallied following better-than-expected earnings from chip giant Intel and top investment bank Goldman Sachs.