US STOCKS-Futures slide amid geopolitical tensions, trade worries




  • In US
  • 2019-08-13 11:22:08Z
  • By Reuters

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Futures down: Dow 0.14%, S&P 0.13%, Nasdaq 0.23%

By Amy Caren Daniel

Aug 13 (Reuters) - U.S. stock index futures fell on Tuesday, tracking a global shift out of riskier assets, as investors grappled with simmering geopolitical tensions and fears of a recession due to a drawn-out U.S.-China trade war.

Increasingly violent protests in Hong Kong and a crash in Argentina's currency and its stock market pushed up demand for U.S. bonds, gold and the Japanese yen.

"Where markets head next will largely hinge on whether the threatened tariffs are implemented, and how the Federal Reserve responds," Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note.

President Donald Trump's latest tariff threat on Chinese goods has raised bets of at least three more rate cuts this year, with a reduction in rates at the Fed's September meeting being fully priced in, according to CME Group's FedWatch program.

The U.S. central bank lowered key borrowing rates for the first time in more than a decade in July and flagged risks from the ongoing trade war on economic growth.

At 6:40 a.m. ET, Dow e-minis were down 36 points, or 0.14%. S&P 500 e-minis were down 3.75 points, or 0.13% and Nasdaq 100 e-minis were down 17.25 points, or 0.23%.

Industrial bellwethers Caterpillar Inc and Boeing Co slipped 0.5% and 0.3%, respectively, in premarket trading.

Chipmakers, which depend on China for a large portion of their revenue, were also under pressure. Micron Technology Inc , Nvidia Corp and Advanced Micro Devices Inc fell between 0.3% and 1.25%.

FAANG group of stocks - Facebook Inc, Amazon.com Inc , Apple, Netflix Inc and Google-parent Alphabet Inc - fell between 0.6% and 0.8%.

A survey showed German business sentiment plunged far more than expected in August, hurt by trade disputes and higher chances of a no-deal Brexit, painting a dismal picture of Europe's biggest economy.

The Labor department's June consumer price index (CPI) data will be closely watched as tame U.S. inflation remains a worry. Economists polled by Reuters expect CPI to rise 0.3% in July, compared with a gain of 0.1% in June.

In a bright spot, China's JD.com Inc rose 4.6% after the e-commerce company beat estimates for quarterly revenue and forecast third-quarter sales above expectations. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Anil D'Silva)

COMMENTS

More Related News

U.S. President Trump does not want to do business with China
U.S. President Trump does not want to do business with China's Huawei
  • US
  • 2019-08-18 22:43:00Z

U.S. President Donald Trump on Sunday said he did not want the United States to do business with China's Huawei even as the administration weighs whether to extend a grace period for the company. Reuters and other media outlets reported on Friday that the U.S. Commerce Department is expected to extend a reprieve given to Huawei Technologies Co Ltd [HWT.UL] that permits the Chinese firm to buy supplies from U.S. companies so that it can service existing customers. The "temporary general license" will be extended for Huawei for 90 days, Reuters reported, citing two sources familiar with the situation.

'Strong economy through 2020': Trump advisers insist recession is not coming

* Peter Navarro and Larry Kudlow dispute market indicators * Tariffs are hurting China not US, trade aide insists Traders work after the opening bell at the New York Stock Exchange on Thursday. Photograph: Johannes Eisele/AFP/Getty ImagesDonald Trump's chief trade advisers insisted on Sunday the US is not facing a recession which markets appear to fear and which could cost the president dearly at the polls next year.Speaking to ABC's This Week, White House trade adviser Peter Navarro defended US policy, predicted a "strong economy through 2020" and disputed the existence of a bond-market indicator of approaching recession that this week sent stocks into their largest one-day sell-off...

Trump wields sanctions hammer; experts wonder to what end
Trump wields sanctions hammer; experts wonder to what end

The Trump administration is aggressively pursuing economic sanctions as a primary foreign policy tool to an extent unseen in decades, or perhaps ever. Since taking office in January 2017, President Donald Trump has used an array of new and existing sanctions against Iran, North Korea and others. The

Shell workers in Pennsylvania say they were told to either attend a recent Trump event, or not get paid
Shell workers in Pennsylvania say they were told to either attend a recent Trump event, or not get paid

Workers at a new Shell plant in Pennsylvania were told they had to attend a speech by President Donald Trump in order to get paid.

Donald Trump is touting voter ID laws as an issue in the 2020 election. Here
Donald Trump is touting voter ID laws as an issue in the 2020 election. Here's why.

As Donald Trump ramps up his reelection for 2020 he is resurfacing a controversial gripe held over from 2016: That voter fraud cost him support.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.