Global stocks mixed ahead of Yellen testimony

  • Global stocks mixed ahead of Yellen testimony

Global stocks mixed ahead of Yellen testimony

The major index futures are now pointing to a mixed open for the markets, with the Dow futures up by down by 28 points and the Nasdaq futures up by 4.5 points.

Profit taking may lead to initial weakness on Wall Street after two days of gains, although trading activity may be somewhat subdued.

An air of caution will prevail over the financial markets worldwide, including the Philippines, ahead of the assessment of the U.S. economy by Federal Reserve chief Janet Yellen before the Congress on Wednesday (PH time). Yellen is scheduled to appear before the House of Representatives Financial Services Committee on Wednesday.

Meanwhile, Asian dealers remained upbeat after Friday's surprisingly strong U.S. jobs data that analysts said has put the Federal Reserve on course for at least one more interest rate hike this year, boosting the dollar. Other Fed officials are speaking as well this week.

EXECUTIVE SHUFFLE: Citrix Systems fell 1.8 percent after the business software company announced that CEO Kirill Tatarinov has been replaced by David Henshall, the company's chief financial officer. South Africa's rand hit a two-month low ZAR=D3 while Turkey's lira TRY= and Russia's rouble RUB= both lost nearly 1 percent to trade just off recent respective 2-1/2 month and six-month lows.

Stocks moved modestly higher over the course of the trading session on Monday after initially showing a lack of direction. While the Dow rose by 0.3%, the Nasdaq edged up by 0.2% and the S&P 500 inched up by 0.1%. Earlier in Asia, Japan's Nikkei 225 index gained 0.6 percent on expectations the yen will weaken further against the dollar as the central bank strives to keep long-term bond yields low.

Meanwhile, the major European markets are turning in a mixed performance on the day. Singapore's Straits Times index was losing 0.8%.

US crude futures rose 0.4 per cent to $44.56 a barrel after adding 0.4 per cent on Monday, while Brent crude was 0.3 per cent higher at $$47.04.

In the meantime, gold was down $3.60 at $1209 an ounce, threatening its recent 4-month lows.

The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.008 to close at NT$30.593, as foreign investors moved funds out of the country, giving a boost to the U.S. currency, dealers said.

The euro pulled back slightly, fetching $1.1397, compared with $1.1399 late Monday in NY.