Wednesday 16 January 2019
Home      All news      Contact us      Chinese
todayonline - 2 month ago

Futures lower as global growth worries seep in

U.S. stock index futures fell on Friday, as a batch of weak Chinese data raised concerns about global growth a day after the Federal Reserve hinted at gradual tightening of borrowing costs. This gave investors a reason to keep away from risky assets, with worries about rising interest rates and the effects of the U.S.-China trade war taking the shine off a decade-long bull run for U.S. stocks this year. The S P energy sector lt;.SPNY gt;, which is down 4.85 percent this year and is lagging the broader S P 500 index lt;.SPX gt;, could come under more pressure as U.S. crude price lt;CLc1 gt; continues to lose ground. It has fallen more than 20 percent from its Oct.3 high, confirming a bear market as investors focused on swelling global crude supply. Shares of copper miner Freeport McMoran Inc lt;FXC.N gt; dropped 2.8 percent in premarket trading as price of the metal, considered an economic bellwether, hit a one-week low. Trade-sensitive stocks such as Boeing Co lt;BA.N gt; and Caterpillar Inc lt;CAT.N gt; fell more than 1 percent. Worries about trade war and how the slowdown in China will impact the rest of the world mean stocks appear to be more risky, so there s a typical risk-off move in markets today, said DZ Bank rates strategist Pascal Segesser. Despite the worries, the main U.S. stock indexes are on track to post strong weekly gains as the midterm elections on Tuesday offered relief to investors, with the results coming in largely as anticipated. The Fed, as expected, left interest rates unchanged following a two-day meeting on Thursday. Their policy statement signaled more rate hikes on the way with the next one expected in December, their fourth this year. Some traders had speculated the Fed may tone down its rhetoric to calm financial markets that were roiled in October, partly on worries about rising interest rates. At 7:18 a.m. ET, Dow e-minis lt;1YMc1 gt; were down 128 points, or 0.49 percent. S P 500 e-minis lt;ESc1 gt; were down 15.25 points, or 0.54 percent and Nasdaq 100 e-minis lt;NQc1 gt; were down 59 points, or 0.82 percent. General Electric lt;GE.N gt; fell 2.9 percent after J.P. Morgan cut price target on the stock to $6 from $10. Activision Blizzard Inc lt;ATVI.O gt; fell 11.2 percent after the video game publisher forecast fourth-quarter earnings below analysts estimates. Skyworks Solutions Inc lt;SWKS.O gt; also fell 7.3 percent after the analog chipmaker provided weak first-quarter forecast, raising concerns of slowing demand for premium smartphones. Among the few bright spots, Walt Disney Co lt;DIS.N gt;, a member of the Dow Jones Industrial Average, rose 1.6 percent after the media company reported better-than-expected results as its theme parks and Marvel movie Ant-Man and the Wasp attracted crowd. REUTERS

Related news

Latest News










Most Popular (6 hours)

Most Popular (24 hours)

Most Popular (a week)