Home News Wall Street set to open lower as U.S.-China trade optimism fades

Wall Street set to open lower as U.S.-China trade optimism fades

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(Reuters) – U.S. inventory indexes had been set to open barely lower on Monday as traders had been cautious about progress in Sino-U.S. trade talks and waited for a slew of financial studies to gauge the well being of the home financial system.

FILE PHOTO: Traders work on the ground on the New York Stock Exchange (NYSE) in New York, U.S., September 18, 2019. REUTERS/Brendan McDermid

The indexes recorded their worst session in about two weeks on Friday – ending a three-week run of positive aspects – after a Chinese agriculture delegation canceled a go to to Montana.

Still, U.S. and Chinese officers described the deputy-level trade talks final week, meant to lay the groundwork for high-level negotiations in October, as being “constructive” and “productive”.

“While chances of a complete deal are pretty remote, people are pinning their hopes on any deal where they just stop the escalation (of the trade war),” stated Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

After the U.S. central financial institution’s pretty upbeat evaluation of the home financial system, traders will monitor a number of financial information within the closing week of the third quarter, together with core private consumption information – the Fed’s most well-liked inflation measure – and closing development figures for the second quarter.

Data from the IHS Markit Purchasing Manager’s Index (PMI) is predicted to present U.S. manufacturing exercise holding regular at 50.Three in September, and providers PMI as rising to 51.5 from 50.7 in August.

The report, due at 9:45 a.m. (1345 GMT) ET, follows disappointing enterprise surveys from throughout the euro zone.

“We did see an increase in factory output and industrial production number reported last week, but the trend is clearly lower and that’s a bit of a concern,” Raymond James’ Brown added.

Investors will even be looking ahead to a speech by Federal Reserve Bank of New York President John Williams on the 2019 U.S. Treasury Market Conference.

At 8:52 a.m. ET, Dow e-minis 1YMcv1 had been down 51 factors, or 0.19%. S&P 500 e-minis EScv1 had been down 2.25 factors, or 0.08% and Nasdaq 100 e-minis NQcv1 remained unchanged.

Apple Inc (AAPL.O), the second most respected inventory on the Nasdaq, rose 0.2% in premarket buying and selling after U.S. trade regulators accredited 10 out of 15 requests for tariff exemptions by the iPhone maker.

Apple provider Micron (MU.O), which makes laptop reminiscence drives, was marginally larger.

Boeing .BA.N dropped 0.7% after a Reuters report that European antitrust regulators had been set to examine the airplane maker’s $4.75 billion bid for the industrial plane arm of Brazil-based Embraer SA (EMBR3.SA).

Additionally, the chief of the U.S. Federal Aviation Administration is set to element progress on the Boeing 737 MAX plane to worldwide air regulators, who’re divided about returning the grounded jet to flight after two deadly crashes.

Juniper Networks Inc (JNPR.N) rose 2.3% as Needham upgraded the community gear maker’s inventory to “buy”.

Reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Anil D’Silva

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