U.S. futures registered a minor recovery on Tuesday
On Monday Stocks fell sharply due to the anticipation of the Federal Reserve Bank’s expected rate increase this week.
The Nasdaq Composite marked drops and fell more than 2% to close the day at 6,753.70. The S&P 500 dropped 2% to 2,545.93 and that was its weakest close for the year. The Dow Jones Industrial Average also fell 507.53 points to finish at 23,592.97 while losing more than 1,000 points in 2 days. On the other hand the Dow Jones Industrial Average futures rose more than 12 points today, indicating a profit of 83.00. The popular S&P 500 and NASDAQ futures also showed small increases.
Oil prices fall for 3 consecutive days
On Tuesday Oil fell over 1% and that was the third decline in a row, while records of inventory increased and estimates of record growth in the United States sparked concerns regarding a possible oversupply.
Currently, the United States of America is the Larger Oil producer in the world. Traders’ anxieties about the projected oil demand along with the uncertainties over the result of proposed production cuts driven by the OPEC and declining global economic growth were also driving rates lower. In the past three trading sessions Brent fell more than 4% while the International benchmark Brent crude oil futures fell to $58.89 per barrel and that is 71 cents down from the last close.
Greenback looks fragile in anticipation of the FED
Today finds the popular greenback weak during the Asian trading session due to market speculation about economic growth retraction and concerns that the Federal Reserve is to halt its monetary tightening cycle this week.
Asian stocks copied the Wall Street overnight fall, following the weak global data, strengthening the chances that the Fed’s generally anticipated rate hike on Wednesday would lead in to a retardation, or even a stop, to three years of consecutive rate hikes. Rodrigo Catril, NAB’s senior currency strategist said “We are expecting a dovish hike by the Fed. The data has not been tepid enough for the central bank not to hike in December.”
Asian stocks fell
On Tuesday equities in Asia fell copying Wall Street’s sell-off due to fears of a slowdown in the global economy. An important speech by Chinese President Xi Jinping gave little relief to the market’s sentiment in Asia. In Hong Kong, the Hang Seng index decreased by more than 1% in its closing hour while the Shanghai composite slid 0.80% to finish at about 2,576.63. Last, the Shenzhen composite was lower by more than 0.8% to close the day at around 1,312.50.