US Markets Set For Slower Start: Oil Up

The U.S markets may have a lower opening Tuesday. This was indicated by a slight drop in the U.S. stock index futures.

Dow futures slipped 24 points at around 3:20 a.m. ET, hinting negative open of more than 22 points. Both S&P and Nasdaq futures were also down.

Asian markets had subdued trading and most regional markets are closed for Lunar New Year holidays.

Investors are looking for clues from corporate results and President Donald Trump’s State of the Union address. In Trump’s speech, investors will be watching out for comments on the trade and economy. New data is expected on services PMI and ISM non-manufacturing.

Among the companies reporting earnings will include Archer Daniels, Estee Lauder, and Ralph Lauren, Disney, Vertex Pharma, and Snap.

European markets up

Tuesday was good for European stocks that zoomed to a nine-week high. The pan-European Stoxx 600 jumped 0.7 percent in early morning trade. Most sectors are in the positive zone.

The rally was led by oil and gas stocks that soared up more than 1.4 percent as good earnings report cheered the market. British Petroleum reported stronger annual profits, higher by 65 percent.

Oil rises in US market

U.S. oil prices edged up Tuesday, driven by anxieties on tightening global supply led by U.S. sanctions on Venezuela and OPEC’s production cuts.

The U.S. West Texas Intermediate (WTI) crude futures were at $54.77 per barrel at 0223 GMT, high by 21 cents or 0.4 percent.

The price at International Brent crude oil futures for a barrel was $62.72, up by 0.4 percent or 21 cents.

According to analysts, the American sanctions on Venezuela brought market attention to the perils of tighter global supplies.

Vivek Dhar, an energy analyst at Commonwealth Bank of Australia said the U.S. sanctions on Venezuela may tighten global supply by 0.5 to 1 percent.

Gold at one week low

On Tuesday, Gold prices stayed unchanged at the one-week low of Monday hurt by a stronger dollar and investors moving to risky assets on the back of stronger U.S. economic data.

Spot gold stood steady at $1,313.95 per ounce at 0349 GMT. In the last session, prices fell to the lowest at $1,308.20 since Jan.29. The U.S. gold futures also slid to $1,318.40 an ounce by 0.1 percent.