Wall Street Might Open In Negative
Early cues from the U.S. Futures Index point that Wall Street might open in negative. Investor optimism is low due to the possible restrictions on economic activity due to the Covid situation.
The continuing spread of the COVID-19 virus is a cause of worry for investors across the world. The U.K. has imposed travel restrictions. India recorded more than 200,000 cases of infections on a daily basis. Brazil reported nearly 50000 daily cases.
Asian shares finished lower, while European shares are trading down.
As of 7.45 am ET, the Dow futures were declining 123.00 points, the S&P 500 futures were down 15.50 points and the Nasdaq 100 futures were sliding 36.00 points.
The U.S. major averages all ended in negative territory on Monday. The Dow ended down 123.04 points or 0.36 percent at 34,077.63. The S&P 500 closed lower by 22.21 points or 0.53 percent at 4,163.26 and the tech-laden Nasdaq ended down 137.58 points or 0.98 percent at 13,914.77.
On the economic front, the Redbook data for the week will be released at 8.55 am. In the prior week, the Store Sales were up 13.2 percent.
52-week Treasury Bills auction will be held at 11.30 am ET.
Asian stocks ended broadly lower on Tuesday. Chinese shares ended slightly lower. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.
The benchmark Shanghai Composite index slipped 4.61 points, or 0.13 percent, to 3,472.94, while Hong Kong’s Hang Seng index edged up 29.58 points, or 0.10 percent, to 29,135.73.
Japanese shares tumbled amid growing COVID-19 concerns. The Nikkei average fell 584.99 points, or 1.97 percent, to 29,100.38, snapping a three-day winning streak.
The broader Topix index closed 1.55 percent lower at 1,926.25 as investors took in calls for new states of emergency in the Osaka region and possibly Tokyo.
Australian markets slipped from 14-month highs. The benchmark S&P/ASX 200 index dropped 47.80 points, or 0.68 percent, to 7,017.80 after five days of gains. The broader All Ordinaries index ended down 45.90 points, or 0.63 percent, at 7,282.10.
European shares are trading mostly lower. Among the major indexes in the region, the CAC 40 Index of France is declining 85.70 points or 1.36 percent. The German DAX is losing 118.67 points or 0.77 percent, the U.K. FTSE 100 Index is down 79.29 points or 1.13 percent.
The Swiss Market Index is declining 78.66 points or 0.70 percent.
The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 1.13 percent.
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