Investing.com - U.S. stock futures pointed to a modestly higher open on Thursday, as investors looked ahead to a flurry of key economic data to gauge the strength of the U.S. economy, while earnings from corporate heavyweights Wal-Mart and Target were also in focus.
Gains were limited as traders remained fixated on concerns over the looming “fiscal cliff” in the U.S. and ongoing fears over the euro zone’s debt crisis.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 0.2%, S&P 500 futures signaled a 0.3% increase, while the Nasdaq 100 futures indicated a 0.2% gain.
U.S. equities fell to multi-month lows on Wednesday, as investors remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Obama is set to meet with congressional leaders on Friday to discuss the country’s fiscal situation.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise before the January 1 deadline.
Traders looked ahead to the release of a flurry of U.S. economic data later in the day. The country was to release reports on initial jobless claims and consumer price inflation, in addition to data on manufacturing activity in New York and Philadelphia.
Meanwhile, a speech by Federal Reserve Chairman Ben Bernanke was to be closely watched for any indications on the future possible direction of monetary policy.
Shares in retail giants Wal-Mart and Target were expected to be active during Thursday’s trading session, with both firms reporting earnings.
Computer maker Dell saw shares gain 0.4% as the company was also due to release corporate earnings.
Across the Atlantic, European stock markets were broadly lower, after data showed the euro zone’s economy contracted in the third quarter, tipping the region into its second recession since the 2008 financial crisis.
The EURO STOXX 50 dropped 0.2%, France’s CAC 40 declined 0.2%, Germany's DAX retreated 0.55%, while Britain's FTSE 100 lost 0.4%.
Official data released earlier showed that the euro zone’s economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Year-on-year, euro zone gross domestic product fell 0.6% compared to a year earlier after contracting at a rate of 0.5% in the previous quarter.
The data came after reports showed that the pace of Germany's economic growth slowed to 0.2% in the third quarter from a 0.3% increase in the previous quarter, while France's economy’s expanded 0.2%, following contraction of 0.1% in the previous quarter.
Data also showed Spain's economy contracted 0.3%, while Italy’s economy shrank 0.2% in the third quarter.
Concerns over the health of triple-AAA Austria and the Netherlands intensified after data showed Austria’s economy shrank 0.1% in the three months to September, while the Dutch economy contracted by an alarming 1.1%. Economists had only expected a decline of 0.2%.
During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.5%, while Japan’s Nikkei 225 Index surged 1.9%.
Shares in Japan bucked the trend, as exporters rallied on the back of a softer yen.
Gains were limited as traders remained fixated on concerns over the looming “fiscal cliff” in the U.S. and ongoing fears over the euro zone’s debt crisis.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 0.2%, S&P 500 futures signaled a 0.3% increase, while the Nasdaq 100 futures indicated a 0.2% gain.
U.S. equities fell to multi-month lows on Wednesday, as investors remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Obama is set to meet with congressional leaders on Friday to discuss the country’s fiscal situation.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise before the January 1 deadline.
Traders looked ahead to the release of a flurry of U.S. economic data later in the day. The country was to release reports on initial jobless claims and consumer price inflation, in addition to data on manufacturing activity in New York and Philadelphia.
Meanwhile, a speech by Federal Reserve Chairman Ben Bernanke was to be closely watched for any indications on the future possible direction of monetary policy.
Shares in retail giants Wal-Mart and Target were expected to be active during Thursday’s trading session, with both firms reporting earnings.
Computer maker Dell saw shares gain 0.4% as the company was also due to release corporate earnings.
Across the Atlantic, European stock markets were broadly lower, after data showed the euro zone’s economy contracted in the third quarter, tipping the region into its second recession since the 2008 financial crisis.
The EURO STOXX 50 dropped 0.2%, France’s CAC 40 declined 0.2%, Germany's DAX retreated 0.55%, while Britain's FTSE 100 lost 0.4%.
Official data released earlier showed that the euro zone’s economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Year-on-year, euro zone gross domestic product fell 0.6% compared to a year earlier after contracting at a rate of 0.5% in the previous quarter.
The data came after reports showed that the pace of Germany's economic growth slowed to 0.2% in the third quarter from a 0.3% increase in the previous quarter, while France's economy’s expanded 0.2%, following contraction of 0.1% in the previous quarter.
Data also showed Spain's economy contracted 0.3%, while Italy’s economy shrank 0.2% in the third quarter.
Concerns over the health of triple-AAA Austria and the Netherlands intensified after data showed Austria’s economy shrank 0.1% in the three months to September, while the Dutch economy contracted by an alarming 1.1%. Economists had only expected a decline of 0.2%.
During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.5%, while Japan’s Nikkei 225 Index surged 1.9%.
Shares in Japan bucked the trend, as exporters rallied on the back of a softer yen.