Monday November 12th

12-11-2018

US stock futures point to a lower open, oil prices surge

U.S. stock-index futures pointed to a lower open Monday morning amid a surge in benchmark crude prices. At around 815 a.m. ET, Dow Jones Industrial Average futures were down 80 points, pointing to a decline of 87.30 points at the open. S&P 500 and Nasdaq 100 futures also indicated a negative open. In the oil markets, prices jumped nearly 1 percent after Saudi Arabia announced a supply cut for December and other producers also weighed output cuts heading into 2019. The rise in oil prices come after a 4.7 percent decline for U.S. crude last week. The commodity also entered a bear market last week, meaning it was down at least 20 percent from its 52-week high. This decline worries investors as crude is often seen as a leading indicator for global economic growth. So steep losses in oil prices could signal the global economy may be slowing down. The session could see low trading volumes as the bond markets are closed as the U.S. marks Veterans Day. On the earnings front, Axa Equitable is set to report before the bell. Meanwhile, Eventbrite and Focus Financial will report after the bell. No economic data are expected on Monday. Asia markets traded mixed on Monday afternoon as investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices. Japan's Nikkei 225 erased early losses of more than 0.7 percent to close fractionally higher at 22,269.88 while the Topix index slightly slipped to 1,671.95. In South Korea, the Kospi fell 5.65 points, or 0.27 percent, to 2,080.44. Markets in Greater China were mostly positive. The Shanghai Composite rose 31.64 points, or 1.22 percent, to 2,630.51 while the Shenzhen composite added 33.55 points, or 2.52 percent, to 1,361.74. In Hong Kong, the Hang Seng index traded fractionally higher in the afternoon. Gold prices were steady on Monday, having dipped to a one-month low in the previous session after the U.S. dollar firmed on the Federal Reserve's plans to gradually keep tightening borrowing costs. Spot gold was little changed at $1,209.57 per ounce at 0121 GMT. On Friday, prices fell to their lowest since Oct. 11 at $1,206.13 per ounce. U.S. gold futures were up 0.3 percent at $1,211.7 per ounce.