U.S. stocks are expected to extend gains Wednesday amid a global equity market rebound that follows the easing of political and military tensions in the Asia region and improving economic sentiment indicators in Europe.
Early indications from U.S. equity futures suggest a 40-point, or 0.17%, gain for the Dow Jones Industrial Average at the opening bell, with a similar percentage advance for the S&P 500 and slightly healthier 0.25% rise for the tech-heavy Nasdaq. The U.S. dollar, which hit a two-and-a-half year low on foreign exchange markets Tuesday, is also on the mend, with the dollar index rising 0.28% to 92.51 during European trading.
Global equity markets rebounded firmly this morning, with stocks in Asia booking solid gains and European benchmarks adding around 0.4% in early trading, thanks in part to a stronger-than-expected reading for Eurozone economic confidence from the European Commission.
Investors were also buoyed by an upgrade for G-20 growth from Moody’s Investors Service, which sees GDP gains for the 20 biggest economies topping 3% this year and next even as the ratings company warned of simmering geopolitical tensions and rising U.S. protectionism.
Britain’s FTSE 100 was marked 0.36% higher in the opening hours of London trading while European benchmarks added around 0.55% as investors scooped up discounted stocks and took advantage of a weaker euro, which slipped from a January 2015 high of 1.2057 yesterday to around 1.1946 by mid-day in Frankfurt.
Global oil prices, however, remain firmly on the back foot even as investors count the cost of shuttered refineries in the Gulf region amid the ongoing devastation and torrential flooding brought by Tropical Storm Harvey.
