Stocks May Give Back Ground In Early Trading - US Commentary
WASHINGTON (Alliance News) - Following the strength seen in the previous session, stocks may move back to the downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 147 points.
Uncertainty may weigh on the markets ahead of the release of reports on consumer and producer price inflation in the coming days.
Indications of rising inflation have recently raised concerns among traders that the Federal Reserve will raise interest rates at faster than previously anticipated rate.
Stocks moved mostly higher over the course of the trading session on Monday, adding to the gains posted last Friday. With the upward move, the major averages further offset the steep losses seen early last week.
The major averages ended the day sharply higher. The Dow soared 410.37 points or 1.7% to 24,601.27, the Nasdaq jumped 107.47 points or 1.6% to 6,981.96 and the S&P 500 surged up 34.65 points or 1.4% to 2,656.00.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. China's Shanghai Composite Index jumped by 1%, while Hong Kong's Hang Seng Index surged up by 1.3%. However, Japan's Nikkei 225 Index bucked the uptrend and fell by 0.7%.
The major European markets are turning in a lackluster performance on the day. While the UK's FTSE 100 Index is up by 0.3%, the French CAC 40 Index is just below the unchanged line and the German DAX Index is down by 0.1%.
In commodities trading, crude oil futures are falling USD0.51 to USD58.78 a barrel after inching up USD0.09 to USD59.29 a barrel on Monday. Meanwhile, after jumping USD10.60 to USD1,331.50 an ounce in the previous session, gold futures are rising USD2.50 to USD1,328.90 an ounce.
On the currency front, the US dollar is trading at 107.61 yen compared to the 108.66 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at USD1.2344 compared to yesterday's USD1.2292.
Copyright RTT News/dpa-AFX
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