Thursday January 10th

10-01-2019

Dow is set to slide 100 points at the open as investors keep an eye on US-China trade talks

U.S. stock index futures were lower on Thursday, as market participants awaited further developments from the latest round of U.S.-China trade talks. At around 7:55 a.m. ET, Dow Jones Industrial Average futures indicated a decline of 104 points at the open. Futures on the S&P 500 and Nasdaq 100 were also seen relatively downbeat. The moves in the premarket trade come after delegations from Washington and Beijing ended three days of trade negotiations in China on Wednesday. China’s commerce ministry said Thursday the negotiations were extensive and had helped set up a foundation for further talks. This week’s face-to-face meetings were the first to take place since U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce last month. If both sides are unable to secure a comprehensive trade agreement by March 2, Trump has said he plans to raise tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports. No major economic data reports are expected to be published on Thursday. Instead, investors may turn their attention to a question and answer session with Federal Reserve Chairman Jerome Powell and Economic Club of Washington President David Rubenstein on Thursday afternoon. The event comes after Fed minutes published Wednesday showed the U.S. central bank could “afford to be patient ” with monetary policy. They also indicated that some Fed officials think a “relatively limited amount” of rate hikes may be coming. Asia markets mostly slipped on Thursday following lower-than-expected Chinese inflation data while investors digested the conclusion of a three-day trade negotiation between the Beijing and Washington. Mainland Chinese markets, watched by investors in relation to the ongoing trade war, experienced a turbulent trading day that saw stocks close in negative territory. The Shanghai composite slipped 0.36 percent to close at 2,535.28 while the Shenzhen composite shed 0.265 percent to 1,303.48. The Shenzhen component also fell 0.259 percent to close at around 7,428.61. Hong Kong’s Hang Seng index was largely flat in its final hour of trade. Elsewhere in Asia, Japan’s Nikkei 225 slipped 1.29 percent to close at 20,163.80 while the Topix index declined 0.85 percent to finish at 1,522.01. South Korea’s Kospi closed fractionally lower at 2,063.28 despite shares of chipmaker SK Hynix jumping 2.67 percent. Oil prices fell more than 1 percent on Thursday due to the lack of any clear resolution to U.S.-China trade talks and official data that again indicated vast fuel stocks in the United States. U.S. West Texas Intermediate (WTI) crude oil futures were at $51.66 per barrel at 0950 GMT, down 70 cents, or 1.3 percent, from their last settlement. International Brent crude futures were also down 1.3 percent, or 79 cents, at $60.65 per barrel. Both benchmarks rose by around 5 percent the previous day, capping off a week-long climb that marked oil’s longest sustained rise since last summer. Gold steadied near a more than six-month peak on Thursday as the dollar’s slight recovery offset concerns about economic growth after U.S.-China talks failed to provide clarity on efforts to end their trade dispute. Spot gold fell 0.12 percent to $1,291.61 per ounce as of 8:42 a.m. ET, hovering near last week’s peak of $1,298.42 - a level last seen in the middle of June. U.S. gold futures gained 0.06 percent to $1,292.80 per ounce.