Wednesday November 14th

14-11-2018

Dow set to rise more than 150 points after report shows inflation slowing

U.S. stock-index futures pointed to a higher open on Wednesday after data released showed inflation slowed on a year-over-year basis. As of 8:35 a.m. ET, Dow Jones Industrial Average futures were indicating a higher open of 154 points, while S&P 500 and Nasdaq 100 futures also pointed to a higher open. The consumer price index rose 0.3 percent in October — in line with expectations — boosted by higher gasoline prices, used cars and housing. On an annualized basis, however, it slowed down by 0.1 percent to 2.5 percent. The so-called core CPI, which strips out food and energy costs, missed estimates on an annualized basis. Wednesday's moves come after a volatile session on Tuesday, with the Dow falling just a touch above 100 points by the close, despite a rise earlier in the session in excess of 100 points. Reports of renewed trade talks between the U.S. and China failed to lift sentiment on Wednesday, with traders keeping a wary eye on volatility in the oil market. Oil rebounded from losses earlier in the session following Tuesday's 7 percent plunge. Prices had initially fallen on the back of investor angst over fears of an abundance of supply and not enough demand. President Donald Trump earlier this week sent another warning to producer cartel OPEC (Organization of Petroleum Exporting Countries), saying he hoped the group would not cut output in a move to buoy prices. Brent crude futures were 1.1 percent higher, trading at $66.19 a barrel, while U.S. West Texas Intermediate (WTI) climbed 1 percent to $56.28. Stocks in Asia were mostly lower on Wednesday as oil prices slipped further into negative territory. Hong Kong's Hang Seng index was lower by 0.74 percent in late-afternoon trade. The mainland China markets, which have been closely watched by investors because of the ongoing U.S.-China trade war, saw losses with the Shanghai composite shedding 0.85 percent to close at around 2,632.24 while the Shenzhen composite declined by 0.401 percent to finish the trading day at about 1,378.36. South Korea's Kospi was lower by 0.15 percent at 2,068.05. In Japan, however, stocks bucked the overall downward trend for the day. The Nikkei 225 gained 0.16 percent to close at 21,846.48 while the Topix index rose 0.17 percent at 1,641.26. Gold prices held steady on Wednesday as the U.S. dollar retraced from a 16-month high touched earlier in the week, easing amid a surge in the euro and sterling on a draft Brexit agreement. Spot gold was little changed at $1,202.08 per ounce at 0754 GMT. Prices had slipped to their lowest level since Oct. 11 at $1,195.90 in the previous session. U.S. gold futures were up 0.1 percent at $1,203.9 per ounce.