Stock Futures Mixed, US Dollar Drifts as Doug Jones Stuns Roy Moore in Alabama
New York (Dec 13) U.S. stocks are set for a mixed open Wednesday as investor pick through the impact of Democrat Doug Jones' shock election win in Alabama on Republican tax cut plans and prep for the final policy meeting of the year for the Federal Reserve.
Jones' narrow win over Republican rival Roy Moore will both reduce the GOP's majority in the Senate and complicate its legislative agenda into mid-term elections next year. The dollar index, which benchmarks the greenback's strength against a basket of six global currencies, was modestly softer at 93.93 in the wake of Jones' victory over Moore, who was robustly backed by President Donald Trump but lost support amid allegations of inappropriate relationships with underage girls.
U.S. equity futures suggest a mixed investor reaction at the opening bell, with contracts tied to the Dow Jones Industrial Average rising 6 points from the benchmark's record high in Tuesday trading and those linked to the broader S&P 500 priced 0.25 points, or 0.01%, to the upside after earlier indicated a modest decline.
The dollar's weakness also held back gains for European and U.K. stocks, all of which fell modestly in the opening hour of trading but kept within a tight range ahead of the Fed's final presser of the year -- and the last for outgoing chair Janet Yellen -- later today in Washington.
Asia stocks painted a similarly mixed picture of pre-Fed trading, as well, with the region wide MSCI Asia ex-Japan index rising 0.07% while Japan's benchmark Nikkei 225 falling for a second consecutive session to end the day 0.47% to the downside at 22,775.07 points.
Global oil prices rebounded overnight, as well, although Brent crude prices remained firmly below the $65 mark -- the highest since July 2015 -- it hit yesterday following news of the shutdown of the Forties System pipeline in the North Sea.
A larger-than-expected 7.4 million draw down for domestic crude stocks in the United States, according to American Petroleum Institute data, supported WTI prices, with February delivery contracts rising 0.6% to $57.41 while Brent futures were marked 0.7% higher at $63.61.
Bitcoin prices were modestly weaker in both the spot and futures markets, with January delivery marked $240 lower at $17,780 on the CBOE, with just over 500 contracts changing hands, and immediate purchase bitcoins trading at $16,846.91 each on the CoinDesk exchange.
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