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Stocks May Open Higher Amid Easing Geopolitical Concerns - U.S. Commentary

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After turning higher over the course of the previous session, stocks are likely to see further upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 153 points.

The upward momentum on Wall Street comes amid easing geopolitical concerns following reports that North Korea is willing to talk about denuclearization.

South Korea's national security director Chung Eui-yong told reporters North Korea would be willing to denuclearize if its security was guaranteed.

"North Korea made clear its willingness to denuclearize the Korean peninsula and the fact there is no reason for it to have a nuclear program if military threats against the North are resolved and its regime is secure," Chung said.

Easing concerns about a global trade war may also lead to strength on Wall Street after President Donald Trump indicated proposed tariffs on steel and aluminum imports would be removed if the U.S. negotiates a "new & fair" NAFTA agreement.

Shortly after the start of trading, the Commerce Department is scheduled to release its report on orders for manufactured goods in the month of January. Factory orders are expected to slump by 1.3 percent.

Stocks showed a significant turnaround over the course of the trading session on Monday after an initial move to the downside.

The Dow jumped 336.70 points or 1.4 percent to 24,874.76, the Nasdaq surged up 72.84 points or 1 percent to 7,330.70 and the S&P 500 spiked 29.69 points or 1.1 percent to 2,720.94.

In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Tuesday. Japan's Nikkei 225 Index shot up by 1.8 percent, while Hong Kong's Hang Seng Index soared by 2.1 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index has climbed by 0.7 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.8 percent.

In commodities trading, crude oil futures are rising $0.62 to $63.19 a barrel after jumping $1.32 to $62.57 a barrel on Monday. Meanwhile, after falling $3.50 to $1,319.90 an ounce in the previous session, gold futures are surging up $11.40 to $1,331.30 an ounce.

On the currency front, the U.S. dollar is trading at 106.23 yen compared to the 106.20 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2409 compared to yesterday's $1.2336.

by RTTNews Staff Writer

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