US pre-open: Markets set to continue recovering week one losses

US markets looked to again recover from the losses from the start of the year.

The Dow Jones Industrial Average was expected to open up by around 101 points, while the S&P 500 and the Nasdaq were set to begin the session 13 and 32 points higher, respectively.

Key economic data is due at 1500 GMT with the Job Openings and Labor Turnover Survey for November and the IBD/TIPP Economic Optimism Index for January.

The Richmond Fed’s Jeffrey Lacker will speak on the economic outlook at 2015 GMT in Columbia, South Carolina.

China fixes yuan firmer

Elsewhere, Asian stocks were mixed on Tuesday as China’s central bank fixed the yuan firmer again but concerns about the nation’s flagging economy remained.

The People’s Bank of China set the mid-point for the yuan at 6.5628 per dollar, just two pips weaker than the previous strong fix and firmer than its spot levels late on Monday.

The spot yuan weakened from its overnight close to 6.5733 to the dollar, but offshore it strengthened as much as 180 pips to 6.5660.

“This recovery in the offshore yuan could well be enough to help put a floor under stock markets in the short term, as US markets managed to stabilise yesterday despite posting new multi week lows during the day,” said Michael Hewson, chief market analyst at CMC Markets.

However, Hewson warned: “With expectations growing that the Chinese yuan has further to go in terms of declines, due to a weakening Chinese economy, speculation is rising that oil prices could well push below the $30 a barrel level in the coming days, particularly given yesterday’s announcement by the EU that Iranian sanctions could be lifted fairly soon.”

The yuan has depreciated more than 1% since the start of the year, after losing 4.7% against the dollar last year.

European markets were up driven by retailers’ healthy gains, however oil prices were getting ever close to $30 a barrel.

Brent was up 0.29% to $31.64 a barrel while West Texas Intermediate dropped 0.10% to $31.38.

The dollar was up against all the main currencies, rising 0.81% against the pound, 0.08% against the euro and 0.02% against the yen. Spot gold was down 0.17% to $1,029.39.

In company news, fourth-quarter earnings season began with Alcoa posting a quarterly profit above forecasts after the close, while its revenue missed expectations. Shares were trading up 0.5% before the bell.

Meanwhile Lululemon Athletica surged 8% in overnight trading after it raised its guidance for the fourth quarter, driven by strong holiday sales.