Friday February 19th

19-02-2016

Futures hold lower after CPI; oil eyed

U.S. stock index futures indicated a lower open on Friday as low oil prices weighed. U.S. crude oil futures for March delivery traded more than 2.5 percent lower below $30 a barrel as of 8:35 a.m. ET. Traders also eyed CPI which showed a 0.3 percent rise ex-food and energy in January. The headline figure was unchanged from the previous month. Year-over-year, the core CPI advanced 2.2 percent, the largest rise since June 2012, Reuters said. Treasury yields edged higher, with the 2-year yield at 0.75 percent and the 10-year yield at 1.78 percent. The U.S. dollar held mildly higher against major currencies, with the euro at $1.107 and the yen at 113.00 yen against the greenback. Dow futures were off by about 50 points amid the data release. Earlier, U.S. futures indicated a slightly higher open, before erasing gains. On the earnings front Deere reported mixed quarterly results, beating on earnings per share, but missing on revenue. In Asia, Japan's Nikkei closed down 1.42 percent, while the Shanghai Composite in China closed 0.05 percent lower. In Europe, the pan-European Stoxx 600 Index was down 1 percent on Friday. The European Union is currently holding crunch talks in Brussels that could determine whether the U.K. stays or leaves the 28 country body. Gold fell on Friday as a steadier tone to stocks and a firmer dollar helped erode some of the previous day's 2 percent gains, but held above $1,220 an ounce as investors bet on a continuation of rock-bottom interest rates. European shares held steady at the end of a strong week, their best since January 2015, while the dollar rose 0.1 percent against the euro. That halted a four-week rally in gold prices, which are set to fall 1.4 percent this week. Spot gold was down 0.01 percent at $1,231.76 an ounce, while U.S. gold futures for April delivery were up 0.5 percent at $1,232.70.