Monday August 13th


US stock futures slide as Turkey’s economic woes continue

U.S. stock index futures slipped ahead of Monday's open, as markets around the globe grew skittish over the future of Turkey's economy. Around 7:10 a.m. ET, Dow Jones Industrial Average futures fell 75 points, indicating a decline of 51.14 points at the open, with the S&P 500 and Nasdaq 100 futures also pointing to a downbeat start to the day. Last week's concerns over the state of Turkey's economy continue, with markets in both the Asia-Pacific region and Europe showing red across the board Monday. Stocks, too, continue to see red, after Turkey's financial troubles sparked fear of contagion and the country's currency took a deep slide. On Friday, the lira temporarily tumbled 20 percent against the U.S. dollar, after President Donald Trump said that he supported doubling metal tariffs on Ankara. While the lira pared some losses over the weekend — after the Turkish central bank moved to improve liquidity and while Turkey's finance minister said the government had outlined an action plan to alleviate concerns — it still lost more than 45 percent of its valueduring this year alone, according to Reuters. Fears continue to permeate, however, over Turkey's deteriorating relationship with the States and the Turkish President's control of the economy.  Elsewhere, concerns over the U.S.' future relations with major economies including China will remain in focus, as trade war tensions continue to escalate. Asian markets slid on Monday as investor sentiment took a knock amid the renewed slump in the Turkish lira. The Nikkei 225 slid 1.98 percent, or 440.65 points, to close at 21,857.43 as the yen firmed amid uncertainty in Turkey. Elsewhere, the Kospi eased 1.5 percent to end at 2,248.45 as tech stocks extended recent declines. Hong Kong's Hang Seng Index, meanwhile, fell 1.51 percent by 3:00 p.m. Chinese shares on the mainland saw slighter declines, with the Shanghai Composite closing lower by 0.32 percent at 2,786.25 and the blue-chip CSI 300 index down 0.43 percent for the day. The Shenzhen Composite, however, gained 0.31 percent, bucking the broader downward trend. Oil prices slipped on Monday as trade tensions and troubled emerging markets dented the outlook for fuel demand, though U.S. sanctions against Iran pointed towards tighter supply ahead. Benchmark Brent crude oil was down 10 cents at $72.74 a barrel by 0850 GMT. U.S. light crude was 15 cents lower at $67.48 a barrel. Gold prices hit 17-month lows on Monday, losing out to U.S. Treasuries and a stronger dollar as investors sought refuge from a financial market rout triggered by a crashing Turkish lira. Investors traditionally use gold as a means of preserving the value of their assets during times of political and economic uncertainty and inflation. But it has this year failed to benefit as investors made a beeline for U.S. Treasuries, seen as the ultimate safe haven, which meant they had to buy dollars. A higher U.S. currency also makes dollar-denominated assets more expensive for holders of other currencies, which subdues demand - a relationship used by funds to generate buy and sell signals from numerical models. Spot gold dropped 0.95 percent to $1,199.95 an ounce by 7:15 a.m. ET, and hit its lowest since March 2017. U.S. gold futures were down 1 percent at $1,206.90 an ounce.