After moving mostly lower over the course of the previous session, stocks may move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a moderately higher open for the markets, with the Dow futures up by 36 points.
While some traders may look to pick up stocks at reduced levels following the weakness seen on Monday, buying interest is likely to be relatively subdued ahead of some key events.
Many traders may remain on the sidelines ahead of the German Federal Constitutional Court's ruling on a request for a temporary injunction against Europe's permanent bailout fund, with the decision due on Wednesday.
Continued uncertainty about the outcome of the Federal Reserve's upcoming monetary policy meeting is also likely to result in below average trading activity.
Peter Boockvar, managing director at Miller Tabak, said, "Today is another sit and wait day for the macro news of the German Constitutional Court decision tomorrow at 4 am ET (widely expected to give the ESM the go ahead), the Dutch elections and the FOMC meeting on Thursday."
The markets have largely shrugged off a report from the Commerce Department showing a narrower than expected U.S. trade deficit for the month of July.
The report showed that the trade deficit widened to $42.0 billion in July from a revised $41.9 billion in June. Economists had expected the deficit to widen to $44.3 billion from the $42.9 billion deficit originally reported for the previous month.
by RTT Staff Writer
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