Friday June 8th


US stocks expected to drop at the open, as G-7 summit kicks off

U.S. stock index futures tumbled ahead of the open on Friday, weighed down by negative sentiment seen by markets overseas. Around 7:20 a.m. ET, Dow Jones industrial average futures fell 124 points, indicating a negative open of 84.41 points. Nasdaq 100 and S&P 500 futures also indicated a lower start to the session for their respective markets. The moves in premarket trading come after U.S. markets finished Thursday's session on a mixed note. While the Dow Jones industrial average finished yesterday's trade in the black, other markets failed to secure gains by the close. Trade continued to show signs of weakness on Friday, with Asia and European markets posting heavy losses during their respective sessions. Investors remain jittery on Friday as another G-7 Summit kicks off in Canada's Quebec today. The Nikkei 225 declined 0.56 percent, or 128.76 points, to close at 22,694.50 after four straight sessions of gains. Elsewhere, South Korea's Kospi edged down by 0.77 percent to 2,451.58 as automakers, steelmakers and technology dragged the index lower. Losses in greater China markets steepened through the session. Hong Kong's Hang Seng Index fell 1.76 percent by 3:00 p.m. Mainland stocks finished the day lower by around the same level, with the Shanghai composite down 1.36 percent at 3,067.13 but off its session low. The Shenzhen composite closed down 0.94 percent. On Friday, President Donald Trump is scheduled to appear at the meeting, along with other major leaders — including those who currently govern nations that Trump has inflicted tariffs upon. One aspect that's put investors on edge is a fresh tweet by Trump, who accused France and Canada of levying "massive tariffs" and establishing "non-monetary barriers." This came after French President Emmanuel Macron told reporters that while the U.S. incumbent may not mind being isolated, the other leaders could sign a six-country agreement if needs be. Concerns surrounding trade and relations between the U.S. and other nations, including its allies, is likely to continue to weigh on sentiment, as little economic news is due out on the week's final day of trade. At 10 a.m. ET, the wholesale trade report will be published. No other major data or earnings are scheduled to be published. Elsewhere, any developments surrounding talks between the U.S. and North Korea will continue to keep investors on edge, as a summit between the two nations on June 12 draws closer. In a speech Thursday, Trump stated that if the initial meeting in Singapore goes well, he would be open to inviting Kim Jong Un to the U.S. Oil prices rose on Friday, driven up as Venezuela struggles to meet its supply obligations and by ongoing voluntary output cuts led by producer cartel OPEC. Brent crude futures, the international benchmark for oil prices, were at $77.45 per barrel at 0051 GMT, up 13 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 19 cents, or 0.3 percent, at $66.14 a barrel. Prices were pushed up by supply trouble in Venezuela, where state-owned oil firm PDVSA is struggling to clear a backlog of around 24 million barrels of crude waiting to be shipped to customers. Gold prices were largely unchanged on Friday as investors remained cautious ahead of key events next week such as a U.S. Federal Reserve policy meeting and a summit between the United States and North Korea. Spot gold was steady at $1,296.60 per ounce at 0052 GMT. It has risen about 0.3 percent so far this week. U.S. gold futures for August delivery fell 0.2 percent to $1,301.10 per ounce.