Wednesday September 9th

9-09-2015

Dow Futures briefly leap 200 points

U.S. stock index futures pointed to a strong open for Wall Street Wednesday, following a sharp rally in global markets, with Japan's blue-chip stock index surging more than 7 percent. The Dow Jones industrial average futures briefly gained more than 200 points in early trade. U.S. stocks closed more than 2 percent higher Tuesday, rebounding after a long weekend and their second-worst week of the year. Asian shares ended the day broadly higher, as "risk-on" sentiment returned to international stock markets after a volatile few weeks marked by fears of a China slowdown and uncertainty about the timing of a U.S. rate rise. Japan's Nikkei index logged its biggest one-day gain since 2008 on Wednesday and China's Shanghai Composite index closed up 2.3 percent. The positive sentiment spilled over into Europe, where major bourses in Germany and France jumped about 2 percent. "Asian markets have swollen up like they were on steroids, as the positive momentum filtered from the U.S. markets. Traders are certainly paying much attention to the silver lining in the economic data and keeping their focus that the efforts of the People's Bank of China will work," Naeem Aslam, chief market analyst at AvaTrade, said in a note. "The kind of panic which we experienced during the past few weeks in the market has very much evaporated and this week is becoming a very robust one for the equity markets." Analysts said the expectation that China's policymakers will take further action to support the economy and prevent a sharp slowdown could help explain the positive tone in global markets. In the U.S., traders are expected to eye the Job Openings and Labor Turnover Survey (JOLTS) at 10 a.m. ET for further clues on the health of the labor market. The key non-farm payrolls report on Friday reinforced expectations that the jobs market is strong enough to weather a rise in U.S. interest rates – possibly when the Federal Reserve meets next week. Investors will also focus on tech giant Apple, which is expected to unveil new products later on Wednesday. tronger stock markets helped stabilize crude oil prices on Wednesday, yet concerns about oversupply persisted and dragged oil prices lower. Brent crude was trading at $49.11 per barrel at 7:23 a.m. EDT (1123 GMT), down 41 cents from the previous evening's close, after jumping 4 percent in the last session. U.S. West Texas Intermediate crude was down 49 cents to $45.45 after falling in the previous session as the end of the U.S. summer driving season pointed to lower fuel consumption. Gold edged back towards three-week lows on Wednesday as stocks strengthened and the dollar firmed, though the metal remained hemmed into a narrow range ahead of next week's Federal Reserve meeting. The gold market will be closely watching the U.S. central bank's next policy statement on Sept. 17 for clues about the timing of a U.S. interest rate rise. Spot gold was down 0.2 percent at $1,119.41 an ounce at 1151 GMT, while U.S. gold futures for December delivery were down $2 an ounce at $1,119.00. The metal is likely to remain rangebound until more clarity emerges on U.S. rates, Citi analyst David Wilson said.