US open: Stocks tread water ahead of Yellen speech

Wall Street's main stockmarket gauges were treading water on Tuesday, following the steep losses seen in the previous session and ahead of a key speech from Fed chair Janet Yellen scheduled for the next day.

The Dow Jones Industrial Average was trading lower by 58 points or 0.36% to 15,969, while the S&P 500 and the Nasdaq were sporting losses of four and nine points, respectively, as of 16:25GMT.

Economic data was mixed, with the Job Openings and Labor Turnover survey data for December revealing a sharp rise in the number of available positions economy-wide to 5.61m in December from 5.4m in the month before.

The data highlighted Fed chair Janet Yellen's policy-quandary as economic growth slowed and the stockmarket weakened, even as the country's labour market tightened day by day, according to Pantheon Macroeconomics's chief economist, Ian Sheperdson.

Also on a positive note, according to the latest estimate from the Federal Reserve Bank of Atlanta US gross domestic product was expected to expand at a 2.5% pace in the first quarter of 2016, up from the 2.2% clip it projected on 5 February.

Nikkei slides as investors flee to safety

Overnight, stocks in Japan fell by more than 5% on Tuesday, and the yield on the country's benchmark government bonds slid into negative territory for the first time, as investors showed signs they were seeking safe havens.

The yen - often described as a safe haven investment during market volatility - rose against the US dollar during the day.

Sumimoto Mitsui Asset Management chief strategist Hitoshi Ishiyama also believed the US Federal Reserve's landmark interest rate rise in December was still having an effect on markets, instilling fears about a tighter interest rate climate and driving down oil prices.

"Slower demand and oversupply alone don't explain these tumbles," he said.

"Oil prices are taking a hit from a major shift in monetary policy."

European stocks were lower in choppy trade, with investors cautious amid ongoing concerns over global growth.

Oil prices had dipped below $30 a barrel again, but with West Texas Intermediate up 0.17% to $29.74 per barrel and Brent rising 2.46% to $32.08.

In company news, Coca-Cola posted fourth quarter earnings of $10bn, slightly above expectations of $9.9bn, which is expected to send shares up when the market opens.

Wendy’s preliminary fourth quarter profits also beat expectations, sending shares up over 3% before the bell.