NEW YORK (AP) – U.S. markets were poised to open significantly higher Tuesday after a U.S. market holiday gave investors an extra day to digest another horrific week.
Futures for Wall Street’s benchmark S&P 500 index rose 1.3% after rising as much as 2% as U.S. markets prepared to reopen after a three-day weekend. Futures for the Dow Jones Industrial Average rose 1.5%.
London and Frankfurt opened higher. Tokyo, Hong Kong and Sydney rose while Shanghai fell. Oil prices rose to over $110 a barrel.
“The modest recovery in stock markets continues in Asia, thanks to US index futures grinding higher,” Oanda’s Jeffrey Halley said in a report.
In midday trading, the FTSE 100 in London was up 0.6%, as was the DAX in Frankfurt. The CAC 40 in Paris was 1.2% higher.
In Asia, the Nikkei 225 in Tokyo rose 1.8% to 26,246.31, while the Shanghai Composite Index fell 0.3% to 3,306.72. Hong Kong’s Hang Seng rose 1.9% to 21,559.59.
Seoul’s Kospi rose 0.7% to 2,408.93 and Sydney’s S&P ASX 200 rose 1.4% to 6,523.80.
India’s Sensex opened up 1.9% to 52,569.30. New Zealand and Southeast Asian markets rose.
Investors worry that efforts by US and European central banks to cool inflation, which is at four-decade highs, could hurt global economic growth.
Japan and China, two of the three largest economies, have avoided participating in rate hikes. The Chinese central bank left interest rates unchanged on Monday. The Bank of Japan maintained its near-zero interest rate policy last week despite concerns that the yen’s exchange rate is weakening.
On Friday, the S&P rose 0.2% but ended the week down 5.8%, marking its 10th decline in 11 weeks. That was the biggest weekly drop since March 2020, at the start of the global pandemic.
The Dow fell 0.1% while the Nasdaq Composite gained 1.4%.
The S&P 500 is down more than 20% from its Jan. 3 peak, putting it in a bear market.
Investors will be looking for clues to the Fed’s plans for possible further rate hikes when Chairman Jerome Powell addresses congressional committees this week.
In energy markets, the reference price for US crude rose $1.88 to $111.44 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oil trading, rose $1.54 to $115.67 a barrel in London.
Kellogg’s shares are up more than 7% premarket after the maker of Frosted Flakes, Rice Krispies and Eggo announced it will split into three companies focused on cereals, snack foods and plant-based foods.
The dollar rose to 136.30 yen from 135 yen on Monday. The euro rose to $1.0554 from $1.0491.