US open: Stocks edge higher despite retreat in crude futures

The main US stock market gauges were registering small gains on Tuesday in what was expected to be a light day in terms of economic data and as investors continued to digest the recent sharp drop in the oil price.

Speaking at The Wall Street Journal’s CEO Council, US Federal Reserve vice chairman Stanley Fischer said the moment for the central bank to withdraw its references to the continuing need to maintain interest rates low for a “considerable time” was nearing.

The Dow Jones Industrials was advancing by 47 points to 17,824, while the S&P 500 was to be seen 9 points higher at 2,062.

The Federal Open Market Committee is weighing economic data as it considers when to raise rates after ending its bond buying programme at its last meeting.

Figures released on Tuesday morning revealed that US construction spending grew by 1.1% on the month in October, ahead of analysts’ estimates for a rise of 0.6%.

Meanwhile, hopes that the European Central Bank (ECB) may introduce full-blown quantitative easing soon were raised after President Mario Draghi said he would consider buying government bonds if inflation remains dangerously low for too long.

Bets on the prospect for further stimulus in China had also grown following the release of weak economic data, including a slowdown in manufacturing activity.

Acting as a backdrop, West Texas Intermediate crude futures were slipping by 2.29% to hit $67.42 on NYMEX following Monday’s small bounce.

That came as analysts at Credit Suisse cut their forecast for the price of Brent oil in 2015 to $75.25 per barrel from $91.50 previously.

Fiat Chrysler Automobiles NV jumped after Transport Ministry data showed a 5.9% rise in car sales in November in Italy.

Avanir Pharmaceuticals rose after Japan’s Otsuka Holdings Co. agreed to buy the Aliso Viejo, California-based drugmaker for about $3.54bn.

Royal Caribbean Cruises rallied on reports the cruise company will replace Bemis Co. in the S&P 500.