The Breakfast Briefing: U.S. Futures Point To Slightly Lower Open

Ted

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

At around 02:30 a.m. ET, Dow futures slipped 39 points, indicating a negative open of more than 19 points. Futures on the S&P and Nasdaq were both marginally lower.

The moves in pre-market trade come amid worries about the global tech sector.

European stocks drifted lower Wednesday after U.K. lawmakers endorsed the terms of a Brexit agreement but rejected the government’s proposed timetable, leaving investors grappling with extended uncertainty.

The Stoxx Europe 600 index ticked down 0.1%, while the U.K.’s FTSE 250 was broadly flat. The British pound, which had fallen sharply after Tuesday’s votes, edged down 0.2%.

Parliament’s rejection of Prime Minister Boris Johnson’s legislative schedule for Brexit reduced the likelihood of a departure by Oct. 31, said Michael Hewson, chief market analyst at CMC Markets. Mr. Johnson said Tuesday he would try to trigger an election if lawmakers move too slowly in considering his deal.

As investors flocked to haven assets, eurozone government bond yields edged lower while the Japanese yen ticked higher and gold prices rose.

The German 10-year bund yield dropped to minus 0.402%, from minus 0.365% on Tuesday. The rate on 10-year U.K. gilts fell to 0.657% from 0.715% Tuesday afternoon. Gold rose 0.6%, while the yen traded 0.1% higher against the U.S. dollar.

Meanwhile, technology stocks edged down in Europe as disappointing third-quarter results from Texas Instruments sent its shares down 10% in after-hours trading and weighed on chip makers globally.

STMicroelectronics dropped 2.8%, while Japan’s Renesas Electronics fell 5.3% and South Korea’s SK Hynix slumped 1.8%.

n Hong Kong, the Hang Seng Index fell 1% amid reports that China is preparing to replace Hong Kong leader Carrie Lam.

More third-quarter earnings are due later in the day, with heavyweights like Blackstone Group, Boeing, Caterpillar, Microsoft, Ford Motor and Tesla set to report.
Regards,
Ted

WSJ:
https://www.wsj.com/articles/brexit-uncertainty-weighs-on-stocks-11571821969

Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-22/asia-stock-futures-mixed-pound-slips-after-vote-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-nike-ceo-servicenow-chipotle-earnings-snap-texas-instruments/

CNBC::
https://www.cnbc.com/2019/10/23/stock-market-earnings-and-economic-data-in-focus-on-wall-street.html

Reuters:
https://uk.reuters.com/article/us-usa-grains-braun/column-crop-watch-what-the-corn-and-soybean-scores-reveal-about-yield-idUKKBN1X20M1

U.K.
https://uk.reuters.com/article/uk-britain-stocks/brexit-tussle-bogs-down-uk-midcaps-idUKKBN1X20RK

Europe:
https://www.reuters.com/article/us-europe-stocks/tech-slide-drags-european-shares-lower-as-brexit-delay-looms-idUSKBN1X20PF

Asia:
https://www.marketwatch.com/story/asian-markets-slip-on-renewed-geopolitical-uncertainty-2019-10-22/print

Bonds:
https://www.cnbc.com/2019/10/22/us-bonds-treasury-yields-in-focus-as-investors-monitor-data-auctions.html

Currencies:
https://www.cnbc.com/2019/10/23/forex-market-brexit-developments-in-focus.html

Oil:
https://www.cnbc.com/2019/10/23/oil-markets-us-inventory-output-cut-prospects-in-focus.html

Gold:
https://www.cnbc.com/2019/10/23/gold-markets-brexit-trade-war-in-focus.html

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