Tuesday November 15th

15-11-2016

Dow eyes seventh straight day of gains; oil prices rise

U.S. stock index futures indicated a slightly higher open Tuesday with investors focused on rising oil prices and the future policies of President-elect Donald Trump. Oil prices rose around 3.2 percent on Tuesday and are likely to buoy sentiment on Wall Street. Renewed optimism that OPEC will deliver production cuts and expectations of falling shale output were seen as reasons behind the push higher, according to Reuters. Meanwhile, traders continue to fixate on the upcoming presidency of Donald Trump and evaluate the prospects of economic growth. The Dow Jones industrial average hit a new all-time high Monday and completed a six-day winning streak. However, with futures only marginally higher it looks as though traders might pause for breath on Tuesday. "Post-election trends in bonds, equities, commodities and currency markets have all run out of steam overnight, at least temporarily," Kit Juckes, strategist at Societe Generale, said in a note. Late Monday, it emerged that former New York Mayor Rudy Giuliani was the favorite to serve as secretary of state in Donald Trump's incoming administration and Trump also spoke to Russian President Vladimir Putin, agreeing to work towards "constructive cooperation". On the data front Tuesday, retail sales and import price figures both beat expectations. Business inventories data are due at 10 a.m. ET. Home Depot, Dick's Sporting Goods, JD.com, Teva Pharma and Beazer Homes all due to report before the opening bell. Also on Tuesday, U.S. Federal Reserve speakers include Boston Fed President Eric Rosengren said the central bank won't be easily swayed from a December rate hike. Fed Governor Daniel Tarullo, Fed Vice Chair Stanley Fischer, and Dallas Fed President Rob Kaplan are also set to speak later on Tuesday. Asia markets were mixed Tuesday, as investors eyed the dollar for guidance amid growing expectations of a Federal Reserve rate hike in December.  The Nikkei 225 finished near flat, down 0.03 percent, or 4.47 points, at 17,668.15, likely taking its lead from the yen's direction. The yen hovered around the key level of 108, fetching 108.30 per dollar as of 3:06 pm HK/SIN, after initially trading as high as 107.76 earlier. The Shanghai composite closed down 0.11 percent, or 3.64 points, at 3,206.73, while the Shenzhen composite was up 0.477 percent, or 10.01 points, at 2,124.4. China is due to release its October foreign direct investment (FDI) figures later in the day. Meanwhile, the Chinese yuan softened to 6.8598 against the greenback as of 3:04 pm HK/SIN, after falling to its weakest since January 2009 at 6.864. The Kospi ended down 0.35 percent, or 6.87 points, at 1,967.53, while Hong Kong's Hang Seng gained 0.3 percent as of 3:05 pm HK/SIN. Oil prices jumped more than 3 percent on Tuesday, bouncing back from multi-month lows on expectations that OPEC will agree later this month to cut production to reduce a supply glut. North Sea Brent crude oil was up $1.26 a barrel, or 2.8 percent, at $45.69 by 8:58 a.m. ET (1358 GMT) after hitting a three-month low of $43.57 on Monday. U.S. light crude was up $1.26 a barrel, or 2.9 percent, at $44.58. It reached a three-month low of $42.20 on Monday. Gold prices moved higher during Asian hours on Tuesday as investors snapped up bars and coins in a wave of physical buying after the precious metal slipped to its lowest level in nearly six months in the previous session. Spot gold was up 0.3 percent at $1,225.01 an ounce at 7:14 a.m EDT. The metal had slipped to its lowest since June 3 at $1,211.08 an ounce on Monday. U.S. gold futures were up 0.25 percent at $1,224.80. The metal has fallen nearly 9 percent from a Nov. 9 high of $1,337.40 per ounce since U.S. President-elect Donald Trump's election win, as investors bet fiscal and trade policies under his administration would stoke inflation.