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Wall Street monitors USD, while oil price drops

February 5
2:48 AM 2016

The weaker movement in the US stock index futures is causing concern among investors. The oil price rise amid fall in the US dollar is making the Wall Street more cautious about the future course of direction. Asian and European stocks moved up on oil price recovery, while US dollar turned weaker. 

Traders are keeping an eye on the movements in the oil price and US dollar as they influence the Wall Street significantly. The drop in oil prices and surge in the US dollar are dangerous for the US stock markets as they impact the corporate profit margins. Stocks on the Wall Street moved up following the price recovery in oil. 

The US dollar is also moving southwards in the wake of a speculation that US Federal Reserve would hold off interest rate hike. Brent crude price was trading one percent lower at $34.70 a barrel on Thursday. US crude price was lower 0.4 percent at $32.15 per barrel. The US futures moved marginal up, but slower than expected, according to CNBC.

The speculation about the possible deferment of interest rate hike by the US Federal Reserve propelled stocks in Asia and Europe higher. The oil price recovery also aided the rebound in stocks. The US dollar eased 0.2 percent against five major currencies. The US dollar against Euro closed 14-week low. The disappointing US economic data impacted it. 

New York Federal Reserve's President William Dudley has cautioned about the weaker outlook for the global economy. Because, it would be taken into consideration before taking a decision on interest rate hike, reports International Business Times. Hang Seng index was up 1.01 percent, South Korea's Kospi index up 1.35 percent and India's S&P BSE Sensex edged up 0.48 percent.

The commodity-related stocks in European markets recorded early gains. UK's Miner-heavy FTSE 100 moved up 1.16 percent, while Germany's DAX also up 0.21 percent. France's CAC 40 rose 0.31 percent. In general, global markets were up and US dollar eased against major currencies. 

Yahoo Finance reports that in Asian markets, Shanghai Composite rose 1.55 percent, while Japan's Nikkei moved 0.85 percent lower. Europe's Pan European Stoxx 600 index was trading 0.1 percent lower. S&P 500 futures rose 0.22 percent in the US market. Nasdaq and Dow Jones stock futures were also moved up 0.22 percent.

Investors were in wait and watch mode ahead of the US factory data. The weekly jobless rate is higher than forecast and productivity also dropped more than anticipated. Investors are looking to next level triggers from the results to be announced by Linkedin, News Corp, Tableau Software and Outerwall.

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