US pre-open: Icy atmosphere as oil prices slide again

Despite a blizzard gripping the eastern seaboard, the US markets are expected to open as scheduled but lower as oil prices slide again.

The Dow Jones Industrial Average was expected to open down around 36 points, while the S&P 500 and the Nasdaq were set to begin the session three and eight points lower, respectively.

It’s a quiet start to the week on the data front with the Dallas Fed’s Texas Manufacturing Outlook Survey due out at 1430 GMT.

However, all eyes will be on the Federal Reserve’s decision on interest rates due on Wednesday.

Asia rallies on earlier oil gains

Elsewhere, Asian stocks were in positive territory at the closing bell on Monday, lifted by the energy sector on earlier gains in oil prices.

Adding to the upbeat sentiment, expectations that central banks in China and Japan will increase stimulus grew. The Bank of Japan holds its policy meeting on 28-29 January.

BoJ Governor Kuroda on Saturday at Davos said that the central bank “won’t hesitate adjusting policy, including easing policy, if necessary to achieve our 2% price target”.

“As dovish as these remarks sound, the BoJ is in the habit of repeating the words that the BoJ ‘won’t hesitate’,” according to Rabobank.

“This phrase was used by Kuroda last May, September and November although the BoJ has not made any significant adjustment to its QQE programme since October 2014.”

European stocks edged lower following softer-than-expected data on German business sentiment, compounded with falling oil prices.

Last week’s gains on oil prices due to the blizzard were partially undone, with Brent down 3.29% to $31.12 a barrel while West Texas Intermediate dropped 3.45% to $31.08.

The dollar was up against the pound, rising 0.09%, but fell 0.14% against the euro and 0.26% against the yen. Spot gold was up 0.69% to $1,105.48.

In company news, shares in Twitter fell 5% after chief executive Jack Dorsey confirmed that four high-profile executives will leave the social media giant, with two other executives picking up extra responsibilities.

Shares in Tyco International surged over 8% after confirmation that it will merge with rival Johnson Controls (up 1%).