US pre-open: Uncertainty endures over oil and Asia

US markets were fluctuating around opening relatively flat on yesterday’s close, unsure what to take from Asia’s mixed results and anxiously waiting to see how oil prices would move.

The Dow Jones Industrial Average was expected to rise 6 points, while the S&P 500 and the Nasdaq were set to begin the session 1 and 11 points lower respectively.

At 1330 GMT the import price index for December will be released, as well as jobless claims data.

Elsewhere, Asia stocks were mostly lower on Wednesday following a broad sell-off on Wall Street on Tuesday, with the Hang Seng index and Japan’s Nikkei 225 index finished down 0.59% and 2.68% respectively but Shanghai bucking the trend with a 1.98% rise after a volatile session.

It followed oil prices yo-yoing as data the previous day showed inventories of US crude oil and refined products hit record highs, adding to worries about an oversupply in the market.

Inventories of gasoline increased by 8.4m barrels in the week to 8 January, following a 10.6m barrel build the previous week, beating expectations for a 1.6m build, data from the Energy Information Administration revealed.

“A depressed oil price remains hindered by global oversupply and the prospect of it getting worse as Iran returns to market, while China jitters continue to shake everything from commodities to financials,” said Mike van Dulken, head of research at Accendo Markets.

At 1220 GMT, Brent was up 1.15% to $30.66 a barrel while West Texas Intermediate rose 0.75% to $30.71.

European markets slid, led by autos pacing the decline as Renault tanked on confirmation that French fraud investigators seized computers from the company as part of a suspected probe into emissions testing.

The dollar rose marginally against the yen, up 0.02%, but sank 0.14% and 0.46% against the pound and the euro respectively. Spot gold was up 0.43% to $1,091.80.

In company news, JP Morgan shares are expected to rise after it posted a 10.2% rise in fourth quarter profit, surpassing expectations as expenses fell.

Goldman Sachs was flat on a report in The Wall Street Journal that the investment bank plans to cut up to 10% of its fixed-income traders and salespeople.

Meanwhile GoPro shares tanked over 24% overnight after the camera manufacturer posted a shortfall in fourth quarter revenues, and announced plans to cut 7% of its workforce.