The Breakfast Briefing: U.S. & Global Stocks Slip As Trade Talks Falter

Ted

FYI: U.S. stock index futures were slightly lower Monday morning.

At around 0:36 a.m. ET, Dow futures fell 47 points, indicating a negative open of more than 80 points. Futures on the S&P and Nasdaq were both higher.

Global stocks retreated amid fading optimism around U.S.-China trade negotiations as the two countries signaled an agreement remained out of reach.

On Friday, Chinese negotiators abruptly canceled a trip to farms in Montana and elsewhere. President Trump also rejected suggestions that the U.S. would accept a partial trade agreement with China, saying his administration is “looking for a complete deal.”

“I think this is the case of, well, we had the promise of more talks but where do we go from here?,” said Chris Beauchamp, chief market analyst at online trading firm IG Group

The Stoxx Europe 600 fell 0.7% in opening trade, with losses across most regional indexes, after a broadly lower session in Asia.

Hong Kong’s Hang Seng fell 0.7% after another weekend of protests. Japan’s Nikkei 225 was closed for a holiday, and Korea’s Kospi was flat.

Indian shares were a bright spot, hitting a two-month high as the government’s measures to prop up sluggish economic growth boost investor sentiment.

Brent crude oil rose 0.9% to $63.76 a barrel after The Wall Street Journal reported Sunday that the Saudi Arabian Oil Co. was offering equipment makers and service providers a premium for parts and repair work as it seeks to restore operations hampered by an attack on oil facilities earlier this month.

The yield on the 10-Year Treasury edged down to 1.749% from 1.754% on Friday afternoon. Bond prices and yields move in opposite directions.

The euro fell 0.5% against the U.S. dollar after French and German manufacturing and services data came in weaker than expected. The yield on the German 10-year bund also dropped to minus 0.564% as investors reached for safe government bonds.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-slip-as-trade-talks-falter-11569226127

Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-22/yuan-gains-yen-slips-as-trade-talks-progress-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-is-it-bull-market/

CNBC::
https://www.cnbc.com/2019/09/23/dow-futures-higher-after-china-cuts-short-trip-to-us.html

Reuters:
https://uk.reuters.com/article/us-climate-change-investors/markets-face-major-risks-over-lax-climate-forecasts-top-investors-warn-idUKKBN1W8006

U.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-gains-as-thomas-cook-collapse-buoys-blue-chip-rivals-idUKKBN1W80JH

Europe:
https://www.reuters.com/article/europe-stocks/update-1-european-stocks-sink-after-weak-business-surveys-idUSL3N26E1CV

Asia:
https://www.cnbc.com/2019/09/23/asia-markets-september-23-us-china-trade-oil-currencies.html

Bonds:
https://www.cnbc.com/2019/09/23/us-bonds-treasury-yields-fall-amid-trade-talk-uncertainties.html

Currencies:
https://www.cnbc.com/2019/09/23/forex-markets-us-china-trade-in-focus.html

Oil:
https://www.cnbc.com/2019/09/23/oil-markets-middle-east-in-focus.html

Gold:
https://www.cnbc.com/2019/09/23/gold-markets-us-china-trade-palladium-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx