Before the bell: What you need to know before the US market open
The price of US crude oil has smashed through $50 per barrel after Brent crossed that mark last night. Meanwhile the world's leaders have assembled in Japan for the G7 meeting.
Here's what you need to know before the US market open at 14:30 London time.
The futures market is pointing up. The S&P is up by 0.1 per cent, while the Nasdaq is up by 0.13 per cent. The Dow is 0.15 per cent higher in the pre-market.
Major markets around the world have had a good day so far, with Japan and China both finishing higher. In Europe the FTSE 100 and the German Dax are both trading up in early afternoon trade.
The US 10-year bond yield is unchanged at 1.87 per cent.
Markets are following black gold…
It hasn't happen in six months but at around 2am London time last night a barrel of Brent crude sold for over $50. Recent gains in the price have been put down to Energy Industry Association data showing declines in US inventories. US West Texas Intermediate crossed the $50 per barrel line just a few minutes ago.
Production problems around the world in Canada, Venezuela and Nigeria has added to the price rally. Goldman Sachs has warned however that low cost Opec producers will likely increase their output in coming months, holding prices under $50 until 2020.
Read more: The oil market could now be in a phase of rebalancing
Just ahead of the US open West Texas Intermediate was going for $50.10 per barrel and Brent was selling at $50.47.
To Japan…
The G7 meeting in Japan officially kicked off today after a week long build up. So far Japanese Prime Minister Shinzo Abe has been causing concern by comparing the on-going commodities crisis (sparked by China's slowing economy) to the global financial crisis of 2008-2009.
There will no doubt be much for posturing and showboating before the meetings end tomorrow.
Read more: G7 leaders must recognise that monetary policy alone won’t solve the world’s ills
The G7 is made up of Britain, Canada, France, Germany, Italy, Japan and the US. China's absence from the group has raised eyebrows.
Stocks to watch
Hewlett-Packard, the computer maker that announced it would split itself in two last November, announced earnings of $0.41 a share last night, beating Wall Street expectations by three cents. Revenue slid 10.7 per cent as the stale PC and printer market failed to pick up. Sales came in at $11.59bn, missing the $11.71bn that had been pencilled in.
Shares in Yahoo are up in the pre-market following yesterday's sell off. Investors took fright after Alibaba (which Yahoo owns a big chunk of) revealed it is being investigated by the US Securities and Exchange Commission over its accounting practices.
Wells Fargo was fined $70m for miscalculating escrow from March 2013 to October 2014 that sometimes led to "unsafe or unsound bank practices." Investors are hoping this is the last of such mortgage fines for the bank.
Companies reporting today
We'll hear from catalogue retailer Sears, fashion retailer Abercrombie & Fitch, as well as discounters Dollar General and Dollar Tree before the open.
Video game store Gamestop will post its latest quarter after the close.
In economics
A busy day on the economics front.
Initial and continuing claims and durable orders are out at 13:30 London time and pending home sales will go live at 3pm.
At 3:30pm we'll get the latest natural-gas inventories.