Jan
03Sentiment Evenly Poised Amid Uncertainties
Tagged Under : Sentiment, Sentiment Poised
– The major U.S. index futures are pointing to a modestly higher opening on Thursday, with sentiment wobbly amid the uncertainty surrounding how the debt crisis in Europe will pan out. That said, the negativity has been mitigated by the release of some positive economic data recently, especially from the U.S. A Labor Department report released earlier in the day showed that jobless claims unexpectedly fell, while a separate report showed that the third quarter GDP growth estimate was downwardly revised.
The dollar has regained some ground amid the fluid situation, suggesting that risk appetite is on the wane. The markets may also focus on the consumer sentiment report to be released shortly after the markets open.
After spending much of Wednesday’s session below the unchanged line, the major averages pared back their losses in afternoon trading before closing on a mixed note. A European Central Bank move to extend long-term loans to the region’s financial institutions did not cut much ice with investors and instead triggered anxiety after it was reported that a large number of banks flocked to take advantage of the financing.
