Tuesday November 29th

29-11-2016

US stocks set to bounce back from worst performance in almost a month

U.S. stock index futures pointed to a higher open on Tuesday as traders digested Wall Street's worst performance in nearly a month in the previous session, as well as key economic data. Revised third-quarter gross domestic product (GDP) data showed the U.S. economy grew at an annualized rate of 3.2 percent. The Case-Shiller 20-city home price index is also due at 9 a.m. ET, while Conference Board consumer confidence wraps up the U.S. data releases on Tuesday at 10 a.m. ET. On the earnings front, Bank of Nova Scotia, Malinckrodt and Tiffany all reported before the bell. Autodesk, Guidewire Software and Splunk are due to report after the bell and Nutanix is also set to report after the market close in its first earnings release since the company went public in September. In Europe, the pan-European Stoxx-600 index was around 0.1 percent higher on Tuesday. In Asia, the Shanghai Composite in China closed 0.19 percent higher, while the Nikkei in Japan closed 0.27 percent lower. In oil markets, Brent crude traded at around $46.75 a barrel on Tuesday, down 3.1 percent, while U.S. crude was around $45.61 a barrel, down 3.12 percent. Oil prices slipped on Tuesday as leading oil exporters struggle to agree a deal to cut production in an attempt to reduce global supply, according to a Reuters report. OPEC are set to meet in Vienna, Austria on Wednesday and traders will be keeping a close eye on announcements regarding an oil production cut. In September, OPEC had outlined a deal to cut output by approximately 1 million barrels per day. Gold prices fell on Tuesday due to expectations of rising U.S. interest rates and a higher dollar and improving sentiment for global economic growth, which means investors are likely to favour risk assets such as equities. Spot gold was down 0.8 percent at $1,184.50 an ounce as of 8:15 a.m. EDT. U.S. gold futures fell 0.6 percent to $1,183 per ounce. The U.S. Federal Reserve is seen raising rates in December and boosting the U.S. currency, which when it rises makes commodities more expensive for non-U.S. buyers. The dollar index, which tracks the greenback against a basket of six major rivals, hit a nearly 14-year peak of 102.050 last week. "Gold is struggling here with the higher dollar and better sentiment for growth," said Danske Bank analyst Jens Pederson. "Rising bond yields means it's cheaper to buy U.S. Treasuries, which, like gold, are viewed as a risk-free asset." However, government bonds, unlike gold, earn interest. Expectations of stronger growth after U.S President-elect Donald Trump takes office in January have also helped equity markets since the election earlier this month.