The Breakfast Briefing: U.S. Futures Point To A Drop Of Nearly 150 Points At the Open

Ted

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

Around 5:20 a.m. ET, Dow futures indicated a negative open of nearly 150 points. Futures on the S&P and Nasdaq were both slightly lower.

The moves in premarket trade come after a media report suggested Chinese officials were increasingly reluctant to agree to a broad trade deal pursued by President Donald Trump.

Global stocks wavered between small gains and losses on Monday, ahead of another round of U.S.-China trade talks and as markets in Hong Kong and mainland China remained shut for a national holiday.

The Stoxx Europe 600 was flat in morning trade, as gains for health-care stocks were balanced by losses in the autos sector after fresh data showed that German manufacturing orders continued to slump in August.

German manufacturing orders declined by 0.6% on the month, official data showed. Economists polled by The Wall Street Journal had forecast a small improvement of 0.2% growth.

The U.S.-China trade row has weighed on Germany’s manufacturing and export-heavy economy throughout the year. But the latest figures also showed that domestic demand had weakened, falling 2.6%, while international orders climbed slightly, by 0.9%.

Yields on German 10-year bunds ticked lower to -0.598%.

In Asia, Japan’s Nikkei slipped 0.2%, while Korea’s Kospi edged up 0.1%.

Chinese Vice Premier Liu He is expected to resume discussions with U.S. counterparts later this week.

In commodities, global oil benchmark Brent crude edged up 0.3%, and haven asset gold slipped 0.4%.

The yield on the U.S. 10-year Treasury rose to 1.524% on Monday, from 1.515% on Friday.

The WSJ Dollar Index, which measures the currency against a basket of its peers, inched up 0.1%.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-waver-ahead-of-trade-talks-11570436598

Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-06/yen-edges-up-yuan-slips-as-focus-returns-to-trade-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-apple-stock-market-rally-china-trade-talks/

CNBC::
https://www.cnbc.com/2019/10/07/stock-market-us-china-trade-talks-in-focus-on-wall-street.html

U.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-unable-to-shake-off-growth-fears-sig-drags-on-mid-caps-idUKKBN1WM0IF

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-muted-as-gains-in-defensives-outweigh-nerves-on-trade-brexit-idUSKBN1WM0JG

Asia:
https://www.marketwatch.com/story/asian-markets-mixed-ahead-of-renewed-us-china-trade-talks-2019-10-06/print

Bonds:
https://www.cnbc.com/2019/10/07/bonds-treasury-yields-tick-higher-as-traders-monitor-trade-talks.html

Currencies:
https://www.cnbc.com/2019/10/07/forex-markets-us-china-trade-talks-in-focus.html

Oil:
https://www.cnbc.com/2019/10/07/gold-markets-us-china-trade-war-in-focus.html

Gold:
https://www.cnbc.com/2019/10/07/gold-markets-us-china-trade-war-in-focus.html

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