Futures slide amid geopolitical tensions, trade worries

(Reuters) – U.S. stock index futures fell on Tuesday, tracking a global shift out of riskier assets, as investors grappled with simmering geopolitical tensions and fears of a recession due to a drawn-out U.S.-China trade war. Increasingly violent protests in Hong Kong and a crash in Argentina’s currency and its stock market pushed up demand for U.S. bonds, gold and the Japanese yen. “Where markets head next will largely hinge on whether the threatened tariffs are implemented, and how the Federal Reserve responds,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note. President Donald Trump’s latest tariff threat on Chinese goods has raised bets of at least three more rate cuts this year, with a reduction in rates at the Fed’s September meeting being fully priced in, according to CME Group’s FedWatch program. [MMT/] The U.S. central bank lowered key borrowing rates for the first time in more than a decade in July and flagged risks from the ongoing trade war on economic growth. At 6:40 a.m. ET, Dow e-minis 1YMcv1 were down 36 points, or 0.14%. S&P 500 e-minis EScv1 were down 3.75 points, or 0.13% and Nasdaq 100 e-minis NQcv1 were down 17.25 points, or 0.23%. Industrial bellwethers Caterpillar Inc ( CAT.N ) and Boeing Co ( BA.N ) slipped 0.5% and 0.3%, respectively, in premarket trading. Chipmakers, which depend on China for a large portion of their revenue, were also under pressure. Micron Technology Inc ( MU.O ), Nvidia Corp ( […]

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.