(News Bulletin 247) – After its downturn the day before, the New York Stock Exchange should regain some color on Tuesday morning, benefiting from a rebound linked to the recovery in energy stocks which, however, seems likely to run out of steam in absence of economic indicators.
Half an hour before the opening, the ‘futures’ contracts on the major New York indices advance by an average of 0.4%, announcing a slight increase in the opening.
Variations should remain limited in the absence of company results, political events or leading economic statistics.
In this traditionally calm period for the markets, the prospect of the US markets closing on Thursday for the Thanksgiving holiday, before a shortened session on Friday, hardly encourages risk-taking.
Investors will simply pay attention to the words of several members of the Fed, including the now hawkish James Bullard, without waiting for a change in monetary policy.
Their comments will however be interesting in view of assessing the probability of a rate hike of 75 basis points next month, which seems to have been holding the line more and more for the past few weeks.
The energy sector is expected to feature prominently with oil rebounding almost 2% above $81.6 a barrel.
Crude oil is buoyed by Saudi Arabia’s denial of reports from the Wall Street Journal that the kingdom is considering a production boost with its OPEC allies.
In the wake of oil prices, energy stocks should sign one of the best performances of the day under the impetus of the heavyweights of the rating that remain Chevron and ExxonMobil.
On the bond front, Treasuries hardly moved in a calm market, again due to the imminence of Thanksgiving and the publication, tomorrow, of the last ‘minutes’ of the Fed.
The yield on 10-year government bonds thus returned towards 3.78% after returning above the 3.80% cap yesterday.
For the record, US equity markets will be closed Thursday for Thanksgiving and only reopen for half a trading session on Friday.
Copyright (c) 2022 News Bulletin 247. All rights reserved.