Monday July 23rd

23-07-2018

US stock futures slip as global trade fears simmer

U.S. stock index futures pulled back ahead of Monday’s open, as worries about global trade continued to simmer. Around 7 a.m. ET, Dow Jones Industrial Average futures fell 32 points, indicating a decline of 41.12 points at the open. Nasdaq 100 and the S&P 500 also pointed to slight declines. At a G-20 meeting in Argentina over the weekend, finance leaders from the world’s biggest economies called for more dialogue to help prevent geopolitical and trade tensions from negatively impacting global economic growth. The meeting took place after President Donald Trump told CNBC's Joe Kernen last week he is ready to slap tariffs on all $505 billion of Chinese goods imported to the United States. The U.S. has already implemented tariffs on $34 billion of Chinese imports, as well as charges on steel and aluminum imports from other countries. Trade fears have kept stock gains in check recently. Since June, the S&P 500 has traded in a 4.6 percent range through Friday's close. Trump also commented on the Federal Reserve last week, saying he was “not thrilled” about rising interest rates, and expressed concern that the U.S. central bank could upset the economic recovery. The Fed has raised rates twice this year and expects to hike two more times before year-end. Meanwhile, earnings season continued on Wall Street, with Halliburton and Hasbro among the companies that reported before the bell. Alphabet, TD Ameritrade and Whirlpool’s financial results are scheduled for release after the close. Asian shares closed mixed on Monday, with Japanese stocks pressured by strength in the yen after the dollar dropped on U.S. President Donald Trump's criticism of the Federal Reserve. The Nikkei 225 dropped 1.33 percent, or 300.89 points, to close at 22,396.99 as the dollar extended its losses against the Japanese currency. Meanwhile, Chinese equities finished the day mixed. The Shanghai composite reversed early losses to climb 1.07 percent to 2,859.52, adding to sharp gains seen in the last session, as banks and industrials offset sharp losses in the health care sector. The smaller Shenzhen composite finished the day higher by 0.53 percent and the blue-chip CSI 300 index closed up 0.94 percent. Hong Kong's Hang Seng Index was steady before the market close, tacking on 0.06 percent by 3:00 p.m. Elsewhere, the Kospi edged down by 0.87 percent to close at 2,269.31 as steep declines in blue chip tech stocks — including Samsung Electronics declining 2 percent and SK Hynix falling 7.05 percent — dragged the index lower. Oil prices rose on Monday on worries over supply after tensions worsened between Iran and the United States, while some offshore workers began a 24-hour strike on three oil and gas platforms in the British North Sea. Brent crude oil rose o a high of $74.26 before easing to around $73.99. U.S. light crude was up 71 cents at $68.97 a barrel. Gold prices were steady on Monday near a one-week high as the dollar eased to its lowest in nearly two weeks after U.S. President Donald Trump criticized the Federal Reserve's interest rate tightening policy. Spot gold held steady at $1,231 an ounce at 0738 GMT. The yellow metal touched its highest since July 17 at $1,235.10, earlier in the session. U.S. gold futures for August delivery were nearly unchanged at $1,231 an ounce.