Wednesday December 7th

7-12-2016

Wall Street poised for flat open on the back of record highs; Fed meeting in focus

U.S. stock index futures pointed to a flat open on Wednesday after another post-election rally in the previous session. The Dow Jones industrial average rose around 35 points in the previous session to post yet another closing record high and U.S. stock index futures indicate further gains on Wednesday morning. The Federal Reserve are due to meet next week and according to the CME Group's FedWatch tool, market expectations for a potential interest rate rise are more than 90 percent. On the data front, Wednesday will see job openings and labor turnover survey (JOLTS) released at 10 a.m. ET with consumer credit data due a little later in the day at around 3 p.m. ET. On the earnings front Costco, H&R Block and Lululemon are all poised to report after the bell. In Europe, the pan-European Stoxx 600 index was around 0.66 percent higher on Wednesday morning. In Asia, the Shanghai Composite in China closed 0.7 percent higher, while the Nikkei in Japan closed 0.74 percent higher. In oil markets, Brent crude traded at around $53.55 a barrel on Wednesday, down 0.7 percent, while U.S. crude was around $50.62 a barrel, down 0.6 percent. Oil prices slipped on the back of continuous doubts over whether a planned production cut led by OPEC and Russia would be deep enough to end global oversupply which has dogged markets for two years. Spot gold was up 0.26 percent at $1,173.75 per ounce by 7:05 a.m. EDT. Gold stayed near 10-month lows touched on Monday, after ending the prior session nearly flat. U.S. gold futures shed 0.44 percent at $1,173.21 an ounce. "Everyone is waiting for the FOMC meeting next week and the liquidation in exchange traded funds and a firm dollar has put pressure on prices," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.