In a tentative turnaround from earlier market weakness, stocks are poised for gains in Tuesday's early trading. Futures for the S&P 500 are showing a promising start, with a 0.7% increase anticipated at opening.
The positive sentiment in futures is driven by a Labor Department report revealing a smaller than expected rise in producer prices for December. Specifically, the producer price index for final demand registered a modest 0.2% increase, down from November’s 0.4%, and notably below the anticipated 0.3% rise.
However, the annual rate of producer price growth did see an uptick, reaching 3.3% in December compared to November's 3.0%—aligning with economists' projections. This incremental monthly increase could alleviate recent inflationary and interest rate apprehensions, though the heightened yearly growth might temper some market enthusiasm.
Attention now turns to Wednesday's forthcoming data on consumer price inflation for December. Current forecasts suggest a 0.3% rise month-over-month, consistent with November's increase, while the annual growth rate is expected to accelerate from 2.7% to 2.9%.
Monday’s session witnessed a significant early downturn in stocks, although the S&P 500 managed to recover and finish in positive territory, climbing by 0.2% to 5,836.22. Conversely, the Nasdaq dropped 0.4% to a one-month low of 19,088.10. The Dow fared better, remaining in the green throughout and closing with a gain of 0.9% at 42,297.12.
Across the Asia-Pacific region, Tuesday saw predominantly upward movement in stock markets. China’s Shanghai Composite Index soared by 2.5%, and Hong Kong’s Hang Seng Index increased by 1.8%. Conversely, Japan's Nikkei 225 Index defied the trend, falling by 1.8%.
European markets mostly followed suit with gains; the German DAX Index rose by 0.7%, and France's CAC 40 Index climbed by 0.8%. Notably, the UK's FTSE 100 Index diverged slightly, dipping by 0.2%.
In the commodities market, oil futures are experiencing a decline of $0.56, settling at $78.26 a barrel, following a substantial increase of $2.25 to $78.82 in the prior session. Gold futures, after a sharp fall of $36.40 to $2,678.60 an ounce, are now seeing a modest uptick of $6.50, reaching $2,685.10 an ounce.
On the currency exchange front, the U.S. dollar has strengthened against the yen, now trading at 157.67 yen compared to Monday's close of 157.48 yen. The dollar is also slightly higher against the euro, valued at $1.0252, up from $1.0245 the previous day.
The material has been provided by InstaForex Company -
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