Monday September 23rd

23-09-2019

US stock futures point to slightly lower open amid global growth worries

U.S. stock index futures indicated a slightly lower open Monday as weak data out of Europe stoked worries over the global economy. Around 7:50 a.m. ET, Dow Jones Industrial Average futures pointed to a loss of 62 points, while S&P 500 and Nasdaq 100 futures also showed a weak open. Manufacturing activity in Germany fell to its lowest level since the financial crisis this month, data from IHS Markit showed. Germany’s services sector also grew at its slowest pace in nine months. Overall, manufacturing in the euro zone fell to a more than six-year low while services grew at is slowest pace in eight months, IHS Markit said. European stocks fell broadly on the weak data. The German Dax dropped 1.1% while France’s CAC 40 slid nearly 1%. Monday’s moves come after the major indexes snapped a three-week winning streak on Friday as they struggled to reach July’s record highs. Entering Monday’s session, the Dow and S&P 500 were more than 1% from their all-time highs. The Nasdaq Composite was 2.7% away. Stocks have struggled at these levels amid lingering trade tensions between China and the U.S. However, senior Chinese trade officials said talks held last week were “constructive.” U.S. officials said in a statement the two sides held “productive” trade talks ahead of formal negotiations next month. President Donald Trump has said China would increase its purchases of U.S. agricultural products as part of a bilateral trade deal. Shares in Asia were mostly lower on Monday as investors watched for developments on the U.S.-China trade front. Mainland Chinese shares declined on the day, with the Shanghai composite falling 0.98% to about 2,977.08 and the Shenzhen composite down 0.912% to approximately 1,660.06. Hong Kong’s Hang Seng index shed 0.57%, as of its final hour of trading. South Korea’s Kospi finished largely flat at 2,091.70. Markets in Japan were closed on Monday for a holiday. Oil fell on Monday, reversing an earlier gain, pressured by the prospect of a faster-than-expected full restoration of Saudi oil output and by fresh signs of European economic weakness. A source, briefed on the latest developments in the Sept. 14 attack on Saudi oil facilities, told Reuters Saudi Arabia had restored around 75% of crude production lost. Oil was up earlier in the session, supported by skepticism over how fast output would come back. Global benchmark Brent crude fell 17 cents to $64.11 a barrel, having risen as high as $65.50. U.S. West Texas Intermediate was down 3 cents at $58.06. Gold rose to a more than one-week high on Monday as weaker-than-expected economic data from Europe heightened fears of a slowdown in global growth, while palladium continued its record run driven by short supply of the auto-catalyst metal. Spot gold was up 0.2% at $1,519.46 per ounce, after hitting its highest since Sept. 12. U.S. gold futures rose 0.8% to $1,526.80 an ounce.