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US stocks likely to see rise in volatility today

FXStreet (Mumbai) - The US index futures are trading volatile ahead of the opening bell after the European Central Bank (ECB) disappointed market expectations by holding-off more monetary firepower till the next quarter, while revising growth and inflation forecasts.

At the time of writing, the S&P 500 futures traded 0.09% lower, while the NASDAQ futures traded 0.06% higher. Meanwhile, the DJIA futures traded 0.06% lower, along with a 0.18% decline in the VIX futures.

The index futures came under pressure after the staff macroeconomic projections by the ECB reduced growth forecast this year to 0.8% from 0.9% seen in September. The projection for next year was cut to 1% from 1.6%. The outlook for 2016 was slashed to 1.5% from 1.9%.

Meanwhile, on the domestic front, the labor department released weekly jobless claims data which showed the labor markets continue to improve with the four-week moving average of the initial claims printing below 300K for the twelfth straight week.

The stock markets in the US closed at a record highs yesterday, supported by encouraging domestic data and expectations of more stimulus from the ECB.

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