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The Breakfast Briefing: U.S. Futures Point To More Trouble For Stocks At Thursday's Open
FYI: Stocks fell around the world on Thursday after the Federal Reserve lifted short-term interest rates for the fourth time this year and provided forward guidance that was less dovish than some investors had expected.
The Stoxx Europe 600 slumped 1.6% in opening trading, dragged lower by sectors exposed to investor anxieties about the health of global economic growth. The index’s tech constituents dropped 2%, while the basic resources sector tumbled 3%.
Oil prices resumed their slide, with strategists citing the broader market malaise. Global benchmark Brent crude fell 2% to $56.13 a barrel, a fresh 14-month low. West Texas Intermediate futures were down 2.4% at $47.02 a barrel.
Selling in Europe came after the impact of the Fed’s policy statement rippled across Asia, where the Japanese Nikkei 225 dropped 2.8% and was on track to close at a 14-month low. Some technology-focused blue chips dropped more than the broader market, with SoftBank Group and Panasonic both down more than 4.7%. Losses elsewhere were more contained, as Chinese, Taiwanese and Hong Kong benchmarks fell by about 1% on Thursday.
U.S. futures put the S&P 500 and the Dow Jones Industrial Average on course to extend the losses of the previous day with opening drops of 0.5%. Both indexes lost roughly 1.5% Wednesday. Regards, Ted
