August 31, 2012-Markets Point to Higher Start Ahead of Fed Speech

The major U.S. index futures are pointing to a notably higher opening on Friday, with sentiment getting a boost from stimulus cues expected from Federal Reserve Chairman Ben Bernanke at the Jackson Hole meeting later today. Reports suggesting that the European Commission is contemplating to vest upon the European Central Bank supervisory role for all eurozone banks have also created some optimism among traders. Stocks across the Atlantic are also notably higher. If Jackson Hole expectations are not met at least to some extent, traders are likely to show some discontentment. U.S. stocks closed Thursday’s session notably lower amid the release of some lukewarm economic data. The negative sentiment was due to apprehension over whether the Federal Reserve and the European Central Bank will deliver in line with expectations. The major averages opened lower and fell further in early trading. Thereafter, the averages moved roughly sideways for rest of the session before closing firmly negative. The Dow Industrials ended down 106.77 points or 0.81 percent at 13,001 and the S&P 500 Index closed 11.01 points or 0.78 percent lower at 1,400, while the Nasdaq Composite closed at 3,049, down 32.47 points or 1.05 percent.