Monday June 5th

5-06-2017

Futures point to lower open on Wall Street; economic data in focus

U.S. stock index futures were expected to open slightly lower on Monday as traders paused for breath after various benchmark indexes hit record highs in the previous session. Dow futures slipped 23 points, while S&P and Nasdaq futures fell 2.75 points and 8 points, respectively. Monday will see services PMI data for May released at around 9:45 a.m. ET, while ISM non-manufacturing data for May and factory orders for April are both scheduled for 10 a.m. ET. On the earnings front, Coupa Software and Thor Industries are both due to report after the market close. In Europe, the FTSE 100 slipped 0.28 percent while the CAC 40 dropped around 0.6 percent. In Germany markets were closed due to a public holiday. In Asia, the Shanghai composite in China closed 0.45 percent lower, while the Nikkei in Japan closed down 0.03 percent. In oil markets, prices slipped amid rising tensions in the Middle East in which Arab states, including top crude exporter Saudi Arabia, coordinated to sever ties with Qatar. Brent crude traded at around $49.53 a barrel on Monday, down 0.82 percent, while U.S. crude was around $47.31 a barrel, down 0.73 percent. Gold hit a six-week high on Monday, buoyed by disappointing U.S. jobs data on Friday that dimmed the prospects for an aggressive run of interest rate increases in the world's biggest economy. U.S. job growth slowed in May and employment gains in the prior two months were not as strong as previously reported, suggesting the labor market was losing momentum. Higher interest rates put pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion. Spot gold had climbed 0.28 percent to $1,282.71 per ounce, adding to the 1.1 percent gain on Friday. It hit a peak of $1,282 an ounce early in the session, its highest level since April 21.