Friday June 10th

10-06-2016

Dow futures fall 100 points as JGB, German bund yields hit record lows

U.S. stock-index futures indicated a lower open Friday as overseas bond yields hit fresh record lows. Dow futures held around 100 points lower, while S&P and Nasdaq futures were down 13 and 32 points, respectively. Japanese government bonds rose, pushing he 10-year JGB yield 2 basis points lower to minus 0.150 percent, after earlier setting a record low of minus 0.155 percent. British and German sovereign debt yields fell to record lows on jitters ahead of about Britain's referendum on European Union membership later this month, as well as the European Central Bank's commencement of its corporate bond purchase program. The benchmark U.S. 10-year yield also fell to its lowest level since February. On the data front, consumer sentiment is scheduled for release at 10 a.m. and the Federal budget at 2 p.m. Meanwhile, the pan European Stoxx 600 Index was down 2 percent on Friday. In Asia, Japan's Nikkei closed 0.40 percent lower on Friday. Markets in China remained closed on Friday. Oil prices fell on Friday, as a stronger dollar pulled crude off the 2016 highs hit this week, although strong refinery demand and global supply disruptions lent some support. International Brent crude oil futures fell 62 cents, or 1.2 percent, to $51.33 per barrel by 8:16 a.m. ET (1216 GMT). U.S. West Texas Intermediate (WTI) futures were down 62 cents, or 1.2 percent, at $49.94 a barrel. Analysts said that a rebound in the dollar had dented oil prices by making fuel imports for countries using other currencies more expensive. Gold gained slightly on Friday as the dollar edged up from recent lows, but the metal held near a three-week high and was on track for a second straight weekly rise. The safe haven asset has been on an upswing since last Friday and has risen nearly 2 percent this week following weaker-than-expected U.S. payrolls data and comments from Federal Reserve Chair Janet Yellen which dampened expectations of an imminent rate hike. Spot gold was up just 0.1 percent at $1,269.60 an ounce. Bullion on Thursday touched its highest since May 18 at $1,271.31. U.S. gold was down 60 cents at $1,272.10.