Monday September 21st

21-09-2015

Dow futures rise 100 points after FED talk

U.S. stocks are set for a higher start on Monday after St. Louis Federal Reserve President James Bullard said he would have dissented on the central bank's decision to hold rates low. "There's a powerful case to be made that it's time to raise interest rates," he told CNBC's "Squawk Box" in an interview. Other Fed speakers this week include Atlanta Fed President Dennis Lockhart and Fed Chair Janet Yellen. Wall Street shares closed sharply lower on Friday as investors assessed the implications of the Fed's decision to keep interest rates at record low levels for a little longer. That sell-off weighed on Asian stocks, which closed broadly lower on Monday with the exception of shares in Shanghai, which ended the day almost 2 percent higher. Meanwhile, markets in Japan are closed for the Respect for the Aged Day. European shares opened the week mixed, with German shares lower and markets in London and Paris higher. Against this backdrop, U.S. stock futures were mixed before turning higher, with Dow Jones futures rising about 100 points. "There still appears to be a relatively downbeat mood in the markets at the moment. The Fed's negative tone following its decision not to raise rates on Thursday is weighing on investor sentiment," Craig Erlam, a senior market analyst at currency trading firm OANDA, said in a note. "Many influential people had been calling for the Fed to leave rates unchanged due to the impact it could have on emerging markets at a time when we'd already seen a fair amount of volatility," he said. "It seems though that it has not received the backing of investors as it both calls into question the strength of the U.S. and global economy and leaves uncertainty hanging over the markets." Oil rose by more than 2.5 percent on Monday after data showed U.S. drilling slowed and a report said $1.5 trillion worth of planned production was uneconomic at current prices. Global benchmark Brent crude oil was up $1.21 at $48.68 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures were trading at $46.06 per barrel, up $1.34. "The fall in rig counts (is) supporting an otherwise bearish market," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates. Gold retreated from the previous session's near three-week high on Monday as strength in stocks and the dollar dampened a rally fueled by the Federal Reserve's decision last week to keep U.S. interest rates on hold. Spot gold was down 0.5 percent at $1,133.70 an ounce, while U.S. gold futures for December delivery were down $4.70 an ounce at $1,133.10.