In the mid of a cautious trade on Tuesday, US stocks managed to edge higher while most of the Asian stocks were challenged. As investors looked ahead of the upcoming OPEC meeting, the US dollar kept its gains while most of the commodities dropped after the opening bell. Since the sentiments over the conclusion of the meeting were relatively mixed, the stock market would likely be volatile in the next few hours.
The strength of the greenback was extended to the stocks as the Fed rate hike provided significant support to the upward momentum of the currency. Headed by the 0.20 percent advance of the US Dollar Index, S&P 500 Futures and Nasdaq Futures both added 0.15 percent to 2,203.50 and 4,868.12 respectively. DAX also came strong with a 0.12 percent increase to end at 10,593.00 as of 11:49 UTC.
Losing against the market volatility, stocks from Asia were mostly down after the mixed Japanese consumer spending data. The Nikkei 225 plunged 0.27 percent with major losses from Steel, Glass and Insurance sectors while the Nikkei Volatility declined 1.04 percent. On the Tokyo Stock Exchange, falling stocks included Fast Retailing Co., Ltd, Kawasaki Heavy Industries and TOTO Ltd.
Further, S&P/ASX 200 went down 0.13 percent at the close in Australia with major downfall from mining and telecom services. In Taiwan, the Taiwan Weighted declined 0.32 percent as the energy and rubber sectors struggled to move up. The PSEi Composite skid 0.65 percent at the close in the Philippines, headed by the losses in mining and services sectors.
At the time writing, USD/JPY traded 0.55 percent up to 122.56 and USD/CHF changed 0.21 percent higher to 1.10144. The Aussie lost 0.23 percent to 0.7463 against the greenback and the Canadian dollar gave up 0.33 percent. The British pound edged 0.34 percent higher while the euro plummeted 0.19 percent.
Meanwhile, as the market awaits for the result of OPEC meeting, the crude oil prices suffer on the lower ground. Oil prices settled approximately $47 per barrel as the mixed sentiments pushed the commodity up and down in the market these past few sessions. On the New York Mercantile Exchange, WTI crude oil for January contract eased 1.81 percent to $46.23 per barrel. Brent crude for January delivery on the International Commodity Exchange was down by 1.66 percent to $47.44 per barrel.
The falling prices were extended to the precious and industrial metals. On the Commodity Exchange, gold prices were down by 0.42 percent, while silver declined 0.36 percent. The platinum spot remained strong with 0.24 percent gains while copper prices made a remarkable loss of 1.61 percent.
In recent weeks, the major oil producers have kept their individual concerns which made the cartel less unified. Some non-OPEC members have expressed their willingness to participate in the output curb, however, Iran and Iraq insisted their unchanged output limit. Even the producers have a mixed outlook regarding the plan which made it hard for the market players to predict the future of the oil production. Will the oversupply sustain? Will the amount of output freeze be enough? Will the oil prices reach the $50 level again? It seems Wednesday meeting has a lot to address.
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