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Dow futures jump over 100 points, following Europe, oil and dollar up

Published 03/11/2016, 06:56 AM
© Reuters.  Wall Street futures take their cue from European stocks and oil
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Investing.com – U.S. futures pointed to a higher open on Friday, following both European stock markets and the dollar’s recovery from the “Draghi effect” on Thursday.

Specifically, the blue-chip Dow futures gained 144 points, or 0.84%, by 11:51AM GMT, or 6:51AM ET, the S&P 500 futures rose 19 points, or 0.94%, while the tech-heavy Nasdaq 100 futures advanced 47 points, or 1.09%.

Oil prices pushed upwards after the International Energy Agency (IEA) suggested on Friday that oil prices might have bottomed out due to production declines in the U.S. and other non-OPEC countries while Iran’s supply increase has not been overdone.

Investors now turn their attention to Friday's weekly rig count from Baker Hughes for further indications of the supply outlook on U.S. domestic energy markets. U.S. oil rigs fell by eight to 392 for the week ending on Feb. 26, moving lower for the 11th consecutive week. With the declines, the rig count fell to its lowest level since Dec. 4, 2009 and one away from an all-time record low.

U.S. crude futures gained 2.27% to $38.70 by 11:52AM GMT or 6:52AM ET, while Brent oil traded up 1.52% to $40.66.

The dollar moved higher against the other major currencies on Friday, as it recovered from losses posted after comments by European Central Bank (ECB) chief Mario Draghi in the press conference after announcing unprecedented monetary policy measures.

Markets focused on the ECB president’s remark Thursday that he didn’t anticipate the need for further interest rate cuts and looked past his emphasis on the fact that economic fundamentals could change.

In this context, at 11:55GMT or 6:55AM ET, the U.S. Dollar Index, that gauges the greenback’s value against a basket of six other currencies, advanced 0.44% to 96.61. EUR/USD fell 0.72% to 1.1097, USD/JPY rose 0.51% to 113.77, though GBP/USD inched up 0.11% at 1.4296.

In a light calendar day stateside, the U.S. Bureau of Labor Statistics will release import and export prices at 13:30GMT or 8:30AM GMT, with no major companies on the docket to report earnings.

Elsewhere, European equities moved higher with the benchmark Euro Stoxx 50 trading up 2.76%, the DAX gaining 2.84%, the CAC 40 advancing 2.80% and London's FTSE 100 adding 1.44%.

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