Higher Open Expected For US Markets: Oil Price Falls

Higher open likely for the U.S. markets after the key stock index futures rose sharply on Thursday morning.

At 7 a.m. ET, Dow Jones futures showed a gain of 264 points at the open. Futures on the S&P and Nasdaq were also high.

The market mood was lifted by China confirming that it would hold trade talks with the U.S. in early October. The Commerce Ministry of China said Liu He spoke with U.S. Trade officials Robert Lighthizer and Steven Mnuchinh.

Both sides were supposed to meet in September. On the data front, a slew of economic reports will be coming.

The ADP National Employment Report for August will be released at 8:15 a.m. ET, with the latest weekly jobless claims and Q2 productivity and unit labor costs to follow.

Services PMI for August, ISM non-manufacturing data for August and factory orders for July will also come.

Companies reporting earnings will include Donaldson, Ciena, Livongo Health, CrowdStrike, DocuSign and Lululemon Athletica.

European stocks traded higher Thursday morning and the pan-European Stoxx 600 rose was up 0.6 percent by mid-morning on the back of the resumption of U.S.-China trade negotiations.

Oil price down

Oil price slipped on Thursday to $60 a barrel after data showed a rise in U.S. crude inventories unexpectedly. This is despite hopes of renewed U.S.-China trade talks adding some support to the prices.

The data from American Petroleum Institute (API) data showed that the U.S crude stockpiles rose by 400,000 barrels last week surprising analysts who predicted a fall.

Benchmark Brent crude fell 25 cents at $60.45 a barrel by 0821 GMT, while U.S. West Texas Intermediate (WTI) crude fell 39 cents to $55.87.

“Oil prices remain range-bound despite yesterday’s rally,” said OANDA analyst Craig Erlam.

Crude gained more than 4 percent on Wednesday as positive Chinese economic data sparked a rally. According to a Reuters survey, contrary to proclaimed production cuts, both OPEC and Russia boosted production in August. That is also softening prices.

Adding more pressure to oil prices is recession concerns worldwide that are hitting oil demand outlook as well.

Asian markets up

Stock market news has noted the surge in Asian stocks Thursday after the subdued trade in the early days of this week.

The impetus includes thaw in Hong Kong after the decision to withdraw the extradition bill and China’s announcement to hold trade talks with the U.S in October.

Hong Kong stocks surged 4 percent on Wednesday. On Thursday, the Hang Seng index closed below the flatline despite the gains on the previous day.

Shares in mainland China made gains. The benchmark Shanghai composite jumped 0.96 percent.

Japan’s Nikkei 225 surged 2.12 percent while the Topix made gains of 1.84 percent. The Kospi in South Korea closed 0.82 percent higher while Australia’s ASX 200 added 0.92 percent.

The Indian stock market had a mixed platter on Thursday. While benchmark 30 share BSE Sensex fell 0.22 percent, the broader NSE Nifty50 jumped 0.03 percent.

Gold price eased on Thursday. The Spot gold shed 0.7 percent to $1,541.20 per ounce while U.S. gold futures fell 0.7 percent to $1,549.70.