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U.S. futures steady, Fed minutes in focus; Dow Jones up 0.01%

Published 08/20/2013, 06:50 AM
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Investing.com - U.S. stock futures pointed to a steady open on Tuesday, as markets were jittery ahead of the minutes of the Federal Reserve's latest policy meeting, amid ongoing uncertainty over the future of the bank's stimulus plan.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.03% rise, while the Nasdaq 100 futures indicated a 0.06% increase.

Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.

Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.

Auto stocks were expected to be active, after Tesla Motors, the electric-car maker led by billionaire Elon Musk, said its flagship Model S sedan received the highest crash test ratings of any car tested by U.S. regulators.
The news sent shares in the company up 0.55% in after-hour trade.

In company news, Blackstone Group was set to remain in the spotlight after the manager of private-equity real estate funds agreed to sell its 50% stake in London’s Broadgate complex for more than USD2.66 billion.

JPMorgan Chase dipped 0.02% in extended trading, after declining weekend reports that U.S. authorities have opened a bribery investigation into whether the bank hired the children of Chinese officials to help it win lucrative business.

Elsewhere, Google shares eased 0.05% pre-market, after gaining over 1% for the ninth anniversary of its IPO on Monday.

Other stocks likely to be in focus included Home Depot, Best Buy, Barnes & Noble, JCPenney and Saks, scheduled to post results later in the day.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 1.47%, France’s CAC 40 plunged 1.50%, Germany's DAX tumbled 1.09%, while Britain's FTSE 100 retreated 0.59%.

During the Asian trading session, Hong Kong's Hang Seng Index dove 2.20%, while Japan’s Nikkei 225 Index sank 2.63%.


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