FYI: U.S. stock index futures were set to open slightly higher Wednesday morning.
At around 02:40 a.m. ET, Dow futures rose 65 points, indicating a positive open of more than 43 points. Futures on the S&P and Nasdaq were both marginally higher.
It comes after a recession indicator in the bond market worsened on Tuesday, while fears about a protracted trade dispute between the world’s two largest economies kept a lid on market sentiment.
Global stocks were broadly lower, amid fresh signs of weakening consumer confidence as trade tensions persisted.
The Stoxx Europe 600 fell by 0.5%, led by losses in its technology sector. The German DAX was down by 0.5% and France’s CAC 40 dropped 0.6%.
The declines came after the GfK consumer survey for Germany pointed to slowing consumption. The report came a day after Germany confirmed that its economy shrank in the second quarter.
The yield on 10-year German bunds, a traditional haven asset, were near a record low at minus 0.712, while the yield on 10-year U.S. Treasurys slipped to 1.464% on Wednesday, from 1.493% on Tuesday. Yields fall as bond prices rise.
In Asia, stocks in Shanghai and Shenzhen weakened amid conflicting reports on whether or not trade talks would be held between Washington and Beijing.
The Shanghai Composite dropped 0.3% while the Nikkei and Korean Kospi climbed 0.1% and 0.9% respectively.
While some Asian markets outside of China were still rebounding from recent large falls, China’s were more responsive to the latest news on trade talks, said Iris Pang, Greater China Economist at ING Bank.
A stabilization in the yuan would serve to calm some nerves among Asian investors, Ms. Pang said. The Chinese central bank’s “latest remarks are very clear that they want to see two-way movement of the yuan, as part of the liberalization process.”
The Chinese offshore yuan was flat against the dollar, with $1 buying 7.1656 yuan. The WSJ Dollar Index, which measures the currency against a basket of its peers, edged up 0.1%.
In commodities, global benchmark Brent crude gained 0.7% after Iran said it would set strict conditions on engaging in any talks with the U.S. Gold edged down 0.1%.
Regards,
Ted
:
WSJ:
https://www.wsj.com/articles/global-stocks-slip-on-weak-data-trade-doubts-11566979600Bloomberg
https://www.bloomberg.com/news/articles/2019-08-27/asia-stocks-look-mixed-on-trade-treasuries-rise-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-bends-treasury-yield-curve-inverts-costco-veeva-heico/CNBC:
https://www.cnbc.com/2019/08/28/stock-market-wall-street-monitors-trade-growth-and-bond-market-recession-signal.htmlU.K.
https://uk.reuters.com/article/uk-britain-stocks/big-tobacco-recession-worries-push-ftse-100-lower-idUKKCN1VI0PPEurope:
https://www.reuters.com/article/us-europe-stocks/european-stocks-fall-as-recession-fears-ramp-up-idUSKCN1VI0P7Asia:
https://www.marketwatch.com/story/asian-markets-mostly-flat-after-us-yield-curve-inversion-deepens-2019-08-27/printBonds:
https://www.cnbc.com/2019/08/28/us-bonds-key-yield-curve-inverts-further-as-30-year-hits-record-low.htmlCurrencies:
https://www.cnbc.com/2019/08/28/forex-markets-us-treasurys-dollar-us-china-trade-war-in-focus.htmlOil:
https://www.cnbc.com/2019/08/28/oil-markets-us-stockpiles-us-china-trade-war-in-focus.htmlGold:
https://www.cnbc.com/2019/08/28/gold-markets-global-economy-us-china-trade-war-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx 
