US Futures Slip What’s Moving Markets

Trading in US stock futures declined significantly on Tuesday, continuing the weakness seen in the previous session amid fears of delaying interest rate cuts by the Federal Reserve until the second half of the year. The weakness followed data showing strength in the US manufacturing sector, casting doubts on the possibility of a rate cut by the Federal Reserve in June. There is more economic data to be monitored on Tuesday, including job opportunities and durable goods orders, both for February, ahead of the widely followed March jobs report on Friday.

The release of strong data on manufacturing activity in the United States on Monday led traders to reconsider expectations for the first interest rate cut by the Federal Reserve this year. This affected the US dollar, with the dollar index, which measures the currency against its major competitors, trading slightly below its four-month high of 105.07 reached on Monday.

Oil prices also rose on Tuesday, supported by signs of improving demand in China and the United States, the world’s two largest oil-consuming countries. Earlier data this week showed that manufacturing activity in China expanded in March for the first time in six months and in the United States for the first time in over a year, which should translate into increased demand for oil. At the same time, concerns grew about further supply disruptions from the Middle East. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are holding an online meeting of its Joint Ministerial Monitoring Committee on Wednesday to review the market.

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