Pre-market Update: Stock Futures Take a Step Back

Investors in the US are taking a breather today after yesterday’s torrid rise that saw the S&P 500 pop 2.12%.  The markets have now digested the US midterm election results and are searching for the next driver for the markets.  Accordingly, a minor retrenchment is reasonable.

However, the rest of the global markets are playing catch up to the US.  Accordingly, markets in Asia saw healthy gains.  A couple of the notable moves across Asia today:

  • Japan’s NIKKEI 500 Index rose 1.42%;
  • The Shanghai Composite Index fell 0.22%;
  • Hong Kong’s Hang Seng Index is up 0.31%;
  • South Korea’s KOSPI Index moved 0.67% higher;
  • India’s SENSEX is up 0.70%;

European stock markets are trading mixed.  Investors continue to focus on the deteriorating relationship between the European Union and the anti-Euro Italian government.

The European Union commissioner for economic affairs said he was keen to pursue dialogue with Italy over the country’s contentious budget.  However, he refused to talk of compromise with Rome, insisting that fiscal rules must be respected.

A look at some of Europe’s top indices shows:

  • London’s FTSE Index is up 0.30%;
  • The German DAX Index is trading 0.15% lower;
  • The FTSE Italia All Shares Index fell 0.60%;
  • The French CAC 40 Index is trading sideways 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 Trading Lower in Pre-Market Action

The US stock market is giving back some of its gains from yesterday in pre-market trading.   Specifically, the NASDAQ and the S&P 500 futures are down 0.66% and 0.46%, respectively.

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.