The Breakfast Briefing: Global Stocks Drop On Trade And Political Concerns

Ted

FYI: U.S. stock index futures were slightly higher Wednesday morning.

At around 01:40 a.m. ET, Dow futures rose 52 points, indicating a positive open of more than 80 points. Futures on the S&P and Nasdaq were both marginally higher.

The moves in pre-market trade come after the U.S. House of Representatives decided to officially start an impeachment inquiry into President Donald Trump. It is yet unclear how much impact there will be on the President, given that an impeachment process has to ultimately be approved by the Senate and the chamber is dominated by Republicans.

•Asian and European stocks decline

•U.S. stock futures waver between gains and losses

•Oil falls as trade tensions weigh on economic growth outlook

Global stocks fell Wednesday amid signs that President Trump will be confronted with increased domestic political pressure even as he continues to pursue a trade war with China.

The Stoxx Europe 600 index dropped 0.8%, while the Shanghai Composite benchmark declined 1% and Hong Kong’s Hang Seng lost 1.3%.

U.S. stock futures tied to the Dow Jones Industrial Average index posted tepid declines. The gauge had swung from gains to losses in U.S. trading Tuesday amid reports that congressional Democrats planned to discuss pursuing impeachment proceedings. After markets closed, House Speaker Nancy Pelosi announced an inquiry into whether Mr. Trump interacted improperly with a foreign official, and Mr. Trump said he would release a transcript of a call with the Ukrainian president that is receiving increasing scrutiny.

Brent crude, the global benchmark, shed 1.4% to $61.28 a barrel as the trade and political tensions added to concerns about global economic growth. Saudi Arabia continued to try to reassure the market about repair work at its damaged facilities following the attacks earlier this month. The oil market has been volatile since those attacks raised concerns about disruptions to global supply.

Among the biggest losers in Europe was EDF, whose shares dropped 6.1%. The company said the estimated cost of the nuclear reactors it is building in the U.K. will be higher than it had projected earlier, in part due to challenging conditions.

Later in the day, investors will be watching for the latest data on sales of new homes in August from the U.S. Commerce Department to gauge the impact of recent rate cuts from the Federal Reserve. Economists are forecasting a 3.8% increase in this week’s report, after a drop in purchases in July compared with the previous month.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-drop-on-trade-and-political-concerns-11569400581

Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-24/asia-stock-futures-drop-amid-u-s-political-risk-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-trump-impeachment-nike-stock-broadcom-stock/

CNBC::
https://www.cnbc.com/2019/09/25/dow-futures-higher-traders-monitor-impeachment-inquiry-trade-talks.html

U.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-slips-as-trump-impeachment-inquiry-darkens-mood-idUKKBN1WA0TK

Europe:
https://www.reuters.com/article/europe-stocks/european-shares-stumble-as-techs-drop-political-uncertainty-in-washington-weighs-idUSL3N26G1VU

Asia:
https://www.cnbc.com/2019/09/25/asia-markets-sept-25-trump-impeachment-inquiry-us-china-trade.html

Bonds:
https://www.cnbc.com/2019/09/25/treasury-yields-higher-as-trump-faces-impeachment-inquiry.html

Currencies:
https://www.cnbc.com/2019/09/24/forex-markets-us-china-trade-germany-economic-data-in-focus.html

Oil:
https://www.cnbc.com/2019/09/25/oil-markets-us-china-trade-relations-in-focus.html

Gold:
https://www.cnbc.com/2019/09/25/gold-markets-donald-trump-impeachment-inquiry-in-focus.html

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