© Reuters
By Peter Nurse
Investing.com — U.S. stocks are seen opening higher Tuesday, starting the new year on a strong note ahead of the release of this week’s key economic data.
At 07:00 ET (12:00 GMT), the contract was up 125 points, or 0.4%, traded 15 points, or 0.4% higher, and climbed 55 points, or 0.5%.
The three major averages closed last year with their worst annual performance since 2008, snapping a three-year winning streak, as investors fretted that the Federal Reserve’s aggressive monetary tightening to combat inflation at 40-year highs would lead to a recession in 2023.
However, the new year is set to start on a more positive note, helped by gains in Europe after preliminary data from some of Germany’s largest states indicated that the country’s headline inflation is set to fall further in December.
The U.S. economic data calendar is quiet Tuesday, with just December U.S. and November due, but the of the Fed’s latest policy meeting on Wednesday and Friday’s December will generate much more attention.
In the corporate sector, Tesla (NASDAQ:) is likely to be in the spotlight after the electric car manufacturer on Monday record production and deliveries for the fourth quarter, but still missed Wall Street estimates.
Oil prices fell Tuesday, weighed by weak from China, the world’s largest crude importer and second-largest oil consumer, as surging COVID-19 infections disrupted production.
Additionally, International Monetary Fund managing director warned on Monday that 2023 will be a tough year for the world economy as the U.S., China, and Europe all deal with weakening economic output.
That said, trading is likely to be volatile as the longer-run prospects for China, the world’s second-largest economy, will look more positive when the worst of the COVID waves have passed.
By 07:00 ET, futures traded 1.4% lower at $79.12 a barrel, while the contract fell 1.4% to $84.68.
Additionally, rose 0.7% to $1,838.65/oz, while traded 1.2% lower at 1.0532.
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