Pre-market Update: Stock Futures Struggle as Rally Peters Out

Global stocks and US stock futures are down to start the week.  Investors focus has shifted to a fear of rising interest rates.  The most recent US jobs data showed robust employment and wage growth.  This increases the likelihood that the Federal Reserve will continue raising interest rates for longer.

This offset good news on the trade front from last week.  Asian shares are down today.  A couple of the notable moves across Asia today:

  • Japan’s NIKKEI 500 Index dropped 1.29%;
  • The Shanghai Composite Index fell 0.41%;
  • Hong Kong’s Hang Seng Index tumbled 2.08%;
  • South Korea’s KOSPI Index moved 0.91% lower;
  • India’s SENSEX fell 0.17%;

European stock markets are mixed in early trading.  A look at some of Europe’s top indices shows:

  • London’s FTSE Index is trading sideways;
  • The German DAX Index is trading sideways;
  • The FTSE Italia All Shares Index down 0.37%;
  • The French CAC 40 Index is up 0.12% at the open.

European stock markets will continue to focus on issues within their own markets such as the Brexit negotiations and the Turkish Lira Crisis.  Additionally, European investors are keeping a close eye on developments in Italy as investors have become fearful of potential anti-EU measures by the new government.

US Futures Are Also Trading Sideways Pre-Market Action

The U.S. stock market is searching for direction in pre-market trading.   Specifically, the NASDAQ and the S&P 500 futures are both trading sideways.

Finally, investors will continue to take their cues from the news cycle heading.  Indeed, any new developments in the Trump legal morass or global trade disputes could see it drive markets in either direction.

See more of our analysis here.

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Al Basoglu

I am a financial services professional with over a decade of experience in various roles. I've lived and worked abroad in 5 different countries while pursuing personal and professional challenges. My interests include markets, history and different cultures. I tend to weave all of my interest into my analysis and articles.