Tuesday September 27th

27-09-2016

Dow futures turn negative as post-debate rally fades

U.S. stock index futures traded near the flatline on Tuesday after the first debate between U.S. presidential candidates, Hillary Clinton and Donald Trump. Clinton appeared to have gained an edge on her Republican opponent in the debate, which saw Dow futures briefly add more than 100 points before paring gains. "The press verdict on the first U.S. presidential debate is that Hillary Clinton 'won', but Donald Trump didn't lose badly enough to really reduce the uncertainty," Kit Juckes, a strategist at Societe Generale, said in a note on Tuesday. Dow futures rose more than 100 points overnight following the debate before dipping into negative territory Tuesday morning. Economic data due from the U.S. on Tuesday include the Case-Shiller home price index and the Conference Board's consumer confidence report for September. Companies reporting earnings on Tuesday include IHS Markit, which reported before the bell, and Nike after the close of trade. Crude oil futures declined on Tuesday after rallying more than 3 percent on Monday. The volatility comes as major oil-producing countries meet in Algiers amid rumors of a long-awaited OPEC deal to freeze crude production. Brent crude futures slipped 80 cents to $46.55 a barrel by 0851 GMT, having closed up $1.46, or 3.2 percent, in the previous session. U.S. West Texas Intermediate (WTI) crude fell 68 cents to $45.25 a barrel, after rising $1.45, or 3.3 percent, in the previous session. With that in mind, energy stocks will be worth watching on Tuesday. Asia markets retraced much of their earlier losses to trade mostly higher on Tuesday, following the conclusion of the first U.S. presidential debate. In South Korea, the Kospi was up 15.73 points, or 0.77 percent, at 2,062.84, after reversing earlier losses of nearly 0.7 percent. In Hong Kong, the Hang Seng index was up 1.15 percent in late afternoon trade. Chinese mainland markets erased early losses, with the Shanghai composite ending up 0.59 percent, or 17.45 points, at 2997.88, and the Shenzhen composite adding 0.75 percent, or 14.66 points, to 1981.26. Japan's Nikkei 225 closed up 139.37 points, or 0.84 percent, to 16,683.93, erasing a nearly 1.3 percent loss in early trade. Stocks were under pressure earlier due to an overnight rise in the yen. Gold fell on Tuesday as the dollar and stocks gained ground on the view that U.S. presidential candidate Hillary Clinton got the better of rival Donald Trump in their first debate. Spot gold was down 0.07 percent at $1,336.86 an ounce, snapping a six-day winning streak. U.S. gold futures eased 0.3 percent to $1,340.70 an ounce.