After it had ended the previous session on a lower position, stocks may possibly move back to the upside in early trading last week. The major index futures are presently pointing to a discreetly higher open for the markets, with the Dow futures up by 15 points.
Bargain hunting may contribute to some of the early strength on Wall Street after last week’s sell-off which pulled the primary averages down to their lowest levels in the past 60 days.
Early trading activity appears to be subdued, however, with the traders looking ahead to the release of the minutes of the recent Federal Reserve meeting, could shed some light on the outlook for monetary policy.
With the central bank moving to wrap its asset purchase programme at its next meeting later this month, traders could probably focus more on the discussion regarding interest rates.
In a speech late in the trading day, the Fed chairman described forecasts for the first rate hike by the mid-2015 as sensible an reasonable.
Traders are likewise reluctant to make any substantial moves ahead of the release of the third quarter results from Alcoa (AA). Alcoa is due to submit its report over its financial reports after the close of the trading making the unofficial start of the quarterly earnings season.
Notwithstanding the recent pullbacks by the markets, survey on investor intelligence revealed a modest drop in the number of bears on Wall Street.
Following the damage done in the U.S. stock market over the past month, one would variably think that it would bring out some of the bears in the market.
But most is brought based on the increase in those expected corrections of which they will not be required to buy which further explains why the deficiency of bears are still directly related in the discretion of central bankers.
Stocks were able to move sharply lower over the course of the trading day last week which added to meagre losses over last week’s trade. The sell-off on Wall Street largely predicated the ongoing concerns regarding the global economic outlook.
The major averages saw additional downside going into the close which ended the session at their worst levels of the day. The Dow plummeted 272.52 points or 1.6 % to 16,719.39, the Nasdaq plunged 69.60 points or 1.6 % to 4,385 and the S&P 500 declined 29.72 points or 1.5 % to 1,935.10.
The major European markets came under pressure with the UK’s FTSE 100 Index edging down 0.2 %, the French CAC 40 Index and the German DAX were both down 0.5 % and 0.7 % correspondingly.
On the currency front, the U.S. dollar was seen trading at 108.18 yen as compared to 108.03 yen which it obtained at the close of the New York trading last week. As against the euro, the dollar was comparatively valued at USD1.260 as compared to last week’s value of USD1.2669.
In commodities trading, crude oil futures slid from USD0.86 to USD87.99 per barrel after slumping USD1.49 to USD88.85 a barrel a week before. Meanwhile, an ounce of gold is presently being traded at USD1,216.60, up USD4.20 from the previous session’s close of USD1,212.40.