US pre-open: Markets take cue from Asia
Updated : 12:51
US markets were set to open in the black again, taking their cue from Asian markets as well as a slight recovery in oil prices.
The Dow Jones Industrial Average was expected to rise 96 points, while the S&P 500 and the Nasdaq were set to begin the session 12 and 32 points higher respectively.
US mortgage applications for the week of January 8 rebounded 21.3% according to the Mortgage Bankers Association.
Other economic data out today includes US oil and gas invetories at 1530 GMT, as well as the monthly budget statement and the beige book at 1900 GMT.
China’s trade surplus rises
Elsewhere, Asia stocks were mostly higher on Wednesday after data showed China’s trade surplus rose more than expected.
It widened to 382.05bn yuan in December from 343.10bn yuan in November, beating analysts’ forecasts of 338.80bn yuan.
Exports rose unexpectedly by 2.3% in December following a 3.7% dip a month earlier. Economists had pencilled in a 4.1% drop.
Imports declined 4% last month, compared to analysts’ estimates for a 7.9% fall and November’s 5.6% slide.
“China’s trade data for December support our view that, despite the turmoil in Chinese financial markets, there has not been a major deterioration in its economy in recent months,” according to Capital Economics.
“Meanwhile, another large trade surplus last month provides a cushion for the People’s Bank in the face of soaring capital outflows.
European markets were up as oil prices started to recover from last night’s drop below $30 a barrel.
Brent was up 1.98% to $31.47 a barrel while West Texas Intermediate rose 2.14% to $31.09.
The dollar was up against all the main currencies, rising 0.32% against the pound, 0.43% against the euro and 0.47% against the yen. Spot gold was down 0.50% to $1,082.80.
In company news, Supervalu was down 1.5% in after-hours trade ahead of its quarterly results due before the open, which should also offer more insight into its plans for Save-A-Lot.
KFC’s parent company Yum! Brands was up 3% before the bell after it reported on Tuesday that sales at its restaurants in China rose by around 1% in December, compared to its 3% decline the previous month.