(Kitco News) – World stock markets were mostly firmer overnight, supported in part by upbeat corporate earnings reports and the recent rally in crude oil prices. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
Gold prices are weaker in pre-U.S. trading on a corrective pullback from recent gains that pushed prices to a three-week high on Tuesday.
In overnight news, the German government 30-year bond (bund) fetched an average yield of 1.29%, which is a nearly two-year high.
The "outside markets" on Wednesday morning see Nymex crude oil futures slightly higher and trading around $46.50 a barrel. Recent upside price action suggests a market bottom is in place for oil. However, talk of OPEC over-production and big U.S. stockpiles will limit the upside for crude.
Meantime, the U.S. dollar index is firmer early today, on a tepid rebound after hitting a 10-month low on Tuesday. The U.S. Republican party's failure to get a new health care package passed through Congress weighed heavily on the greenback Tuesday. The dollar bears have the solid overall near-term technical advantage amid a price downtrend that has been in place all year long.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential construction, and the weekly DOE liquid energy stocks report.
By Jim Wyckoff, contributing to Kitco News; [email protected]