Forex Trading

Futures Pointing To Modestly Higher Open On Wall Street


Stocks may move to the upside in early trading on Thursday, adding to the gains posted in the previous session. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

The markets may continue to benefit from optimism about the outlook for interest rates following the release of the minutes of the Federal Reserve’s latest monetary policy meeting on Wednesday.

The minutes reinforced expectations of a rate cut next month, as a “vast majority” of participants said it would “likely be appropriate” to lower rates at the next meeting if inflation data continued to come in “about as expected.”

Trading activity may be somewhat subdued, however, as the Kansas City Fed’s Jackson Hole Economic Symposium gets underway later in the day.

Fed Chair Jerome Powell is scheduled to speak at the symposium in Jackson Hole, Wyoming, on Friday, with traders looking for the central bank chief’s comments to provide further clarity about the outlook for rates.

Ahead of Powell’s remarks, CME Group’s FedWatch Tool indicate a 71.5 percent of a quarter point rate cut next month and a 28.5 percent chance of a half point rate cut.

In U.S. economic news, the Labor Department released a report this morning showing a modest rebound by initial jobless claims in the week ended August 17th.

The report said initial jobless claims rose to 232,000, an increase of 4,000 from the previous week’s revised level of 228,000.

Economists had expected jobless claims to inch up to 230,000 from the 227,000 originally reported for the previous week.

Not long after the start of trading, the National Association of Realtors is due to release its report on existing home sales in the month of July. Existing home sales are expected to rise to an annual rate of 3.93 million in July after plunging to a rate of 3.89 million in June.

Following the modest pullback seen in Tuesday’s previous session, stocks moved back to the upside during trading on Wednesday. The major averages fluctuated over the course of the trading day but managed to close in positive territory.

The Nasdaq and the S&P 500 closed higher for the ninth time in the past ten sessions. The Nasdaq climbed 102.05 points or 0.6 percent to 17,918.99 and the S&P 500 rose 23.73 points or 0.4 percent to 5,620.85, while the narrower Dow inched up 55.52 points or 0.1 percent to 40,890.49.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan’s Nikkei 225 Index advanced by 0.7 percent, while Hong Kong’s Hang Seng Index jumped by 1.4 percent.

The major averages have also moved to the upside on the day. While the German DAX Index is up by 0.3 percent, the French CAC 40 Index is up by 0.2 percent and the U.K.’s FTSE 100 Index is up by 0.1 percent.

In commodities trading, crude oil futures are inching up $0.11 to $72.04 a barrel after slumping $1.24 to $71.93 a barrel on Wednesday. Meanwhile, after edging down $3.10 to $2,547.50 an ounce in the previous session, gold futures are slipping $10.60 to $2,536.90 an ounce.

On the currency front, the U.S. dollar is trading at 146.07 yen versus the 145.21 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1137 compared to yesterday’s $1.1124.





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