Stocks in the US look set to chart a higher course again on Tuesday with the Dow Jones set to comfortably clear the 19,000 level. Jitters in Europe and light trading after the Thanksgiving holiday weekend saw US shares pullback at the start of the week.
With even the OECD endorsing Donald Trump’s infrastructure spending plans, the pullback in US shares is likely more as a result of its old age than concern over his staff appointments.
There is some positive momentum from Europe where stocks are mostly higher, though the FTSE 100 is lower.
Some heebie-jeebies before Wednesday’s OPEC meeting are dragging down the FTSE’s commodity-sensitive sectors. Shares of Chilean miner Antofagasta (LON:ANTO) are lower by over 3% while BP (LON:BP) and Royal Dutch Shell (LON:RDSa) shares are down over 1%.
A rise in mortgage approvals helped send homebuilders towards the top of the UK Stock market with Barratt Developments (LON:BDEV) shares the biggest riser. The bounce in approvals since the summer lows, like other areas of the UK economy, continues to dumbfound the more doom-laden market participants. Still, the share price gains could be short-lived. Homebuilders, like sterling, could come in for some punishment as markets look ahead to next week’s high court case appeal.
Later on, data is expected to show that US GDP grew at 3.0% y/y in Q3, up from 2.9% in the prior reading. The US economy has had a stop-start year, but the most recent Q3 data showed signs of an upswing. This next revision should provide confirmation, adding fuel to the belief that US rates could rise next year.
USA pre-opening levels
S&P 500: 6 points higher at 2,207
Dow Jones: 49 points higher at 19,121
Nasdaq 100: 13 points higher at 4,870
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