Tuesday July 2nd

2-07-2019

Dow futures are slightly lower amid US-China trade uncertainty

U.S. stock index futures were slightly lower Tuesday morning, amid uncertainties over the prospect of a trade deal between the world’s two largest economies. Around 7 a.m. ET, Dow futures indicated a negative open of more than 45 points. Futures on the S&P and Nasdaq were lower as well. Market focus is largely attuned to global trade developments, after the U.S. and China agreed to restart trade talks over the weekend. President Donald Trump said Monday that any trade deal with Beijing would be “somewhat tilted” in favor of Washington. The U.S. government also threatened to impose tariffs on $4 billion of additional European Union goods in a long-running dispute over aircraft subsidies. U.S. stocks rallied in the previous session, as investors cheered a trade truce aimed at resolving an ongoing conflict. Nonetheless, market participants were in a cautious mood on Tuesday, waiting on actual signs of progress to settle a dispute that has battered global trade, business sentiment and economic growth. On the data front, investors are likely to monitor the latest light vehicle sales figures for June on Tuesday. In corporate news, Acuity Brands, Simply Good Foods, and Greenbrier Companies are expected to report their latest quarterly results before the opening bell. Stocks in Asia mostly edged up on Tuesday, as the Reserve Bank of Australia (RBA) slashed its cash rate to a new all-time low. Mainland Chinese stocks were mostly higher on the day, with the Shenzhen component gaining 0.16% to 9,545.52 and the Shenzhen composite adding 0.159% to 1,619.12. The Shanghai composite, on the other hand, was just below the flatline at 3,043.94. Hong Kong’s Hang Seng index, which returned to trade after a holiday on Monday, jumped 1.26%, as of 3:16 p.m. The Nikkei 225 in Japan added 0.11% to close at 21,754.27, while the Topix rose 0.31% to finish its trading day at 1,589.84. In South Korea, however, the Kospi slipped 0.36% close at 2,122.02. Oil prices slipped on Tuesday as concerns that the global economy could be slowing outweighed an agreement by producer club OPEC on Monday to extend supply cuts until next March. Brent crude futures were down 18 cents, or 0.28%, at $64.88 a barrel by 0845 GMT. U.S. crude futures for August were down 20 cents, or 0.34%, at $58.89 a barrel, after touching their highest in more than five weeks on Monday. Gold prices gained on Tuesday after a steep fall in the previous session, as investors fretted about an economic slowdown amid weak global manufacturing data and U.S.-European trade ructions. Spot gold was up 0.6% at $1,392.91 per ounce at 0733  GMT, after falling 1.8% in the previous session, its biggest one-day percentage decline since November 2016. U.S. gold futures were up 0.4% to $1,395 an ounce.