Wednesday March 22nd

22-03-2017

Futures point to lower open; oil weighs amid growing concerns over Trump’s economic plans

U.S. stock index futures pointed to a lower open Wednesday amid doubts U.S. President Donald Trump may not be able to deliver campaign pledges to lower taxes and boost investment. A more than 1 percent decline in oil prices also weighed. The Energy Select Sector SPDR (XLE) traded 0.4 percent lower. Brent crude traded at around $50.25 a barrel on Wednesday, down 1.39 percent, while U.S. crude was around $47.59 a barrel, down 1.35 percent. The major U.S. stock indexes suffered their worst day of the year on Tuesday as bank stocks dropped more than 4 percent in the previous session. Banks were pushed lower by falling yields. On Wednesday, the benchmark 10-year note yield held around 2.4 percent. On the data front, the Federal Housing Finance Agency will release January's home prices at 9 a.m. ET and later at 10 a.m. there will be existing home sales numbers. In Europe, the pan-European Stoxx-600 index was around 0.72 percent lower on Wednesday. In Asia, the Shanghai Composite in China closed 0.5 percent lower, while the Nikkei in Japan closed 2.13 percent lower. Gold strengthened on Wednesday, with the price touching its highest in three weeks as the dollar languished near six-week lows and bond yields sank on uncertainty over the economic policies of U.S. President Donald Trump. Spot gold rose 0.27 percent to $1,247.83 per ounce, after touching a three-week peak of $1,248.47.