The Breakfast Briefing: U.S. Futures Point To Lower Open: Hong Kong Stocks Fall as Violence Builds

Ted

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

At around 04:30 a.m. ET, Dow futures fell 93 points, indicating a negative open of more than 109 points. Futures on the S&P and Nasdaq were both lower as well.

Investors are closely monitoring news on the China-U.S. trade front, after President Donald Trump said Friday that he had not agreed to scrap tariffs on Chinese goods. His comments followed news from earlier last week, after the Chinese commerce ministry said that both sides had agreed to cancel existing tariffs in phases.

Violence in Hong Kong triggered the largest drop in local stocks since August on Monday, while concerns around U.S.-China trade negotiations continue to weigh on equities across the globe.

The Hang Seng benchmark closed down 2.6%, the fourth-biggest drop of the year, after police fired gunshots at protesters, and demonstrations across the city forced schools and offices to close early.

The ongoing protests have triggered similar selloffs this year, including in August when demonstrators paralyzed the airport, one of the world’s busiest travel hubs. The Hang Seng Index is one of the weakest major stock market performers this year, up just 4%, compared to double-digit gains elsewhere in Asia, the U.S. and Europe.

Elsewhere in Asia, Japan’s Nikkei 225 benchmark lost 0.3% and South Korea’s Kospi dipped 0.6%.

In Europe, the Stoxx Europe 600 dipped 0.1% U.S. Treasurys were not trading Monday for the Veterans Day holiday. The U.S. stock market will be open.

Among the biggest movers in Europe, shares in bakery chain Greggs rallied 12.9%. The company raised its profit outlook for 2019 after it saw sales jump following the launch of its vegan sausage roll earlier this year.

Investors continued to monitor the status of U.S.-China trade negotiations stocks after President Donald Trump said Friday he hasn’t yet agreed to roll back tariffs on Chinese imports.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/hong-kong-stocks-fall-as-violence-builds-11573465475

Bloomberg:
https://www.bloomberg.com/news/articles/2019-11-10/stock-futures-mixed-in-asia-with-s-p-500-at-record-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-alibaba-singles-day-strong-china-markets-fall-on-hong-kong-protests/

CNBC::
https://www.cnbc.com/2019/11/11/dow-futures-china-us-trade-take-center-stage.html

Reuters:
https://uk.reuters.com/article/us-global-markets/world-shares-fall-as-hong-kong-violence-unnerves-investors-idUKKBN1XL036

U.K.
https://uk.reuters.com/article/uk-britain-stocks/rising-hong-kong-tensions-drag-asia-exposed-uk-stocks-idUKKBN1XL0X6

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-retreat-london-nervous-ahead-of-gdp-data-idUSKBN1XL0WY

Asia:
https://www.marketwatch.com/story/asian-markets-fall-as-hong-kong-violence-escalates-trade-tensions-linger-2019-11-10/print

Bonds: (Market Closed)

Currencies:
https://www.cnbc.com/2019/11/11/forex-markets-us-china-trade-deal-in-focus.html

Oil:
https://www.cnbc.com/2019/11/11/oil-markets-us-china-trade-talks-in-focus.html

Gold:
https://www.cnbc.com/2019/11/11/gold-markets-us-china-trade-deal-in-focus.html

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