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Easing Crude Prices, Middle East Views Lift Wall Street Pre-Bell; Asia, Europe Up

-- Wall Street futures pointed moderately higher pre-bell Tuesday on easing global oil prices, and mixed reports of additional peace talks between Tehran and Washington, possibly starting on Wednesday.

In the futures, the S&P 500 rose 0.4%, the Nasdaq inclined 0.4% and the Dow Jones was up 0.6%.

West Texas Intermediate crude oil traded down 0.7% at $86.79, in pre-bell action.

Investors also await the March retail sales report from Washington, scheduled for an 8:30 am ET release, and likely to be parsed for clues to American consumer spending patterns, given higher fuel bills.

In political news, the Senate Banking Committee hearing of Kevin Warsh, for the Federal Reserve chair, starts at 10 am ET.

Asian exchanges traded in the green overnight, while European bourses edged north midday on the continent.

On the earnings scene, 3M (MMM) slipped 0.9% pre-bell after the diversified manufacturer reported Q1 adjusted earnings and sales above consensus, but offered tempered guidance, in morning hours.

GE Aerospace (GE) traded up 3.1% pre-bell after the tech-manufacturer reported Q1 earnings and revenue above outlooks, and affirmed guidance, in pre-market release.

D.R. Horton (DHI) traded up 2.1% pre-bell after the homebuilder reported fiscal Q2 earnings and revenue above expectations, and modestly lifted guidance, in morning release.

UnitedHealth (UNH) shares gained 6.5% pre-bell after the healthcare giant reported Q1 earnings and revenue above consensus, and issued solid guidance, in morning hours.

On the economic calendar, in addition to the retail sales report, is the business inventories bulletin for February, along with the pending homes sales index for March, at 10 am ET.

Federal Reserve Governor Christopher Waller is slated to speak on Tuesday.

In premarket action, Bitcoin traded at $76,579 and 10-year US Treasuries offered 4.25%. Spot gold commanded $4,783 an ounce.

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EMEA Oil Update: Brent Ease as Trump Extends Ceasefire

Crude futures eased on Wednesday as the US extended its ceasefire with Iran, temporarily stalling a direct military escalation.The Brent futures contract slipped 0.8% to $97.74 per barrel. Murban closed at $96.29 on April 21 and was not trading as of the time of publishing this oil price update.US President Donald Trump said Tuesday that he extended the ceasefire with Iran while maintaining a blockade, as negotiations remain uncertain.Trump said in a Truth Social post, "... upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal."Trump said the US blockade would be maintained, signaling continued pressure, and also indicated that talks remain conditional on Iran presenting a clear negotiating position.While President Trump delayed military action against Iran at Pakistan's request, the continued closure of the Strait of Hormuz is suppressing global demand."The conflict is curbing supply, with demand destruction near 4 million barrels per day and possibly rising to 5 million mainly impacting Asia," Saxo Bank analysts said.On the supply side, data from the American Petroleum Institute revealed Tuesday that US crude oil inventories declined by 4.40 million barrels in the week ended April 17.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.

Asia

Market Chatter: Malaysia Postpones Planned Carbon Tax Amid Middle East Worries

Malaysia has delayed its planned carbon tax implementation, citing ongoing geopolitical tensions in the Middle East, The Star reported Tuesday, citing Natural Resources and Environmental Sustainability Minister, Arthur Joseph Kurup.The tax, which was previously expected to start this year for sectors such as iron, steel and energy, has been deferred to avoid adding pressure on industries and consumers. Kurup said the government will instead prioritize setting up a carbon credit framework, including verification systems and a national carbon registry, reportedly.The National Carbon Market Policy (DPKK), approved on April 1, will serve as the basis for Malaysia's participation in both voluntary and compliance carbon trading markets. He added that Malaysia remains committed to emissions reduction targets for 2035 and its net-zero goal by 2050, while continuing to push the green transition, the news outlet said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Asia

Japan Equities Advance on Stronger Outlook, Export Growth

Japanese equities closed higher on Wednesday, with the Nikkei 225 gaining after J.P. Morgan raised its year-end target for the benchmark to 70,000 from 61,000, citing momentum in AI and a weaker yen.On Wednesday, the Nikkei 225 rose 0.4%, or 236.69 points, to close at 59,585.86.Analysts at J.P. Morgan said concerns about overheating in the Nikkei 225 outweigh improving long-term growth prospects for Japanese equities, even as crude prices stay elevated.The benchmark index climbed to a record on Wednesday, nearing the 60,000 mark, as it recovered from a broad global selloff linked to tensions in the Middle East.In economic news, Japan's trade surplus widened to 667 billion yen in March as exports grew faster than imports, with shipments to China and the U.S. offsetting a sharp slump in Middle East trade amid the Iran conflict, data from the Ministry of Finance Japan showed.The Bank of Japan said the financial system remains stable but flagged rising risks from geopolitical tensions, higher oil costs, and exposures to real estate, foreign funds and leveraged market activity.On the corporate front, Mitsubishi UFJ Financial (TYO:8306) fell over 1% after a report said it is considering offering higher deposit rates for a planned digital bank to compete on speed and cost.Tokyo Electric Power (TYO:9501) rose about 4% after securing 4.7 billion yen in fresh grants to support ongoing nuclear compensation payouts.Advantest Corporation (TYO:6857) gained around 3% after joining Applied Materials' EPIC platform and opening a Silicon Valley research center to advance chip development.

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