US markets point to higher open ahead of NATO, G7, EU summit
U.S. markets were poised to open higher Thursday as leaders including President Joe Biden prepared to meet in Europe to discuss the Ukraine crisis, sanctions and the Russian oil embargo
NEW YORK — U.S. markets were poised to open higher Thursday as leaders including President Joe Biden prepared to meet in Europe to discuss the Ukraine crisis, sanctions and the Russian oil embargo.
Futures for the Dow Jones Industrials rose 0.4% and the same for the S&P 500 gained 0.5%. World shares were largely mixed at midday.
Shares rose in Moscow after Russia’s exchange resumed trading under heavy restrictions nearly one month after shares plunged and the exchange was shut down following the invasion of Ukraine.
Limits are in place to prevent the kind of massive selloff that occurred in anticipation of crushing financial and economic sanctions from Western nations. Foreign shareholders will be unable to sell shares — a restriction Russia imposed to counter Western sanctions against its financial system and the weakening ruble.
Trading was allowed in 33 of the 50 companies that are part of the country’s benchmark MOEX index, including air carrier Aeroflot, state-owned gas producer Gazprom and the oil company Rosneft, according to a central bank announcement about the reopening.
The index was up 5.5% by mid-afternoon Moscow time.
Investors around the world were watching to see the outcome of the meetings of NATO and a European leaders summit Thursday.
Germany’s DAX came back from bigger losses and was down 0.1%. In Paris the CAC 40 was up 0.1% and Britain’s FTSE 100 rose 0.2%.
In Asia, Tokyo’s Nikkei 25 rose 0.3% to 28,110.39. In Seoul, the Kospi declined 0.5% to 2,729.66, while the Shanghai Composite index gave up 0.6% to 3,250.26.
The Hang Seng in Hong Kong sank 1% to 21,929.68. In Australia, the S&P/ASX 200 edged 0.1% higher, to 7,387.10.
U.S. benchmark crude oil lost 12 cents to $114.81 per barrel in electronic trading on the New York Mercantile Exchange. It rose $5.66 to settle at $114.93 per barrel on Wednesday. A barrel of Brent crude, the international standard, gained 37 cents to $118.12. per barrel. Prices are up more than 50% in 2022 so far, raising concerns about the impact on a wide range of consumer goods and consumer spending overall.
Many of the higher costs incurred by businesses have been passed on to consumers and higher prices for food, clothing and other goods could lead them to cut spending, resulting in slower economic growth. Central banks have been reacting by raising interest rates to try and counter the impact from inflation.
Bond yields have been rising overall as the market prepares for higher interest rates, but they eased back Wednesday. The yield on the 10-year Treasury was unchanged at 2.37%.
Investors are awaiting the latest round of corporate earnings as the quarter comes to a close.
In currency trading, the U.S. dollar rose to $121.59 Japanese yen from $121.15 yen late Wednesday. The euro fell to $1.0988 from $1.1007.
