US pre-open: Markets set for lower open ahead of GDP

Markets look set for a lower open on Friday ahead of the latest quarterly US gross domestic product (GDP) figures while the US dollar remains strong.

Spreadex analyst Connor Campbell said: “A strong close for the US markets last night couldn’t help this morning’s futures, as the USA prepares itself for what is expected to be a disappointing advance GDP figure."

The preliminary estimate of fourth-quarter US economic growth is due out later on and is forecast to show that the annualised rate of GDP expansion eased to 3% from 5% in the third quarter.

Google failed to satisfy traders, in the latest disappointing turn of earnings season. Google said profits rose almost 30% but it failed to meet revenue forecasts. Amazon sales increased 15% but lost $25m in profits year-on-year.

"The strong US dollar was a major concern heading into the fourth quarter earnings season and that was precisely the reason given by Google for missing earnings estimates overnight and is contributing towards a lower open on Friday and could lead to a loss for major indices in January," said Jasper Lawler from CMC Markets.

Amazon however was rising strongly in pre-market trade after sales surged 15% and profits fell less than expected.

Meanwhile, oil prices have remained steady just below $50 a barrel but analysts have reiterated that without market demand, the rebound cannot last long.

Oil prices rose early on Friday, with Brent rising 0.4% at $49.35 a barrel and WTI increasing 0.9% to $44.92 a barrel.

Over on COMEX, gold futures were receding 0.61% to $1,263.50 while the dollar was advancing against the pound while falling against the yen and the euro.