MTS Futures News_PM_20190612
· U.S. stock index futures were slightly lower Wednesday morning, as the White House took a tough line on trade talks with China.
At around 04:00 a.m. ET, Dow futures slipped 58 points, indicating a negative open of more than 49 points. Futures on the S&P and Nasdaq were both seen slightly lower.
Market focus is largely attuned to global trade developments, after President Donald Trump said Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agreed on as many as five “major points.” Trump did not specify these trade issues.
· European stocks traded lower Wednesday after the U.S. and China resumed tough stances in their ongoing trade war.
The pan-European Stoxx 600 dropped 0.4% at the start of the morning session, construction and material stocks leading losses with a 0.8% decline.
Reuters reported Tuesday that euro zone deputy finance ministers supported the European Commission’s view that disciplinary action is warranted against Italy over the country’s rising debt.
· Asian stocks slid Wednesday after Wall Street ended a 6-day winning streak overnight, with China’s consumer price index rising2.7% year-on-year. Hong Kong’s Hang Seng index led losses with a 1.59% drop by the afternoon as protests continued over the contentious Chinese extradition law.
· Shares in Asia Pacific declined on Wednesday following an overnight trading session on Wall Street that saw the end of the Dow Jones Industrial Average’s winning streak.
Mainland Chinese shares slipped on the day, with the Shanghai composite declining 0.56% to close at 2,909.38 and the Shenzhen component shedding 0.92% to end its trading day at 8,954.72. The Shenzhen composite also fell 0.639% to close at 1,528.40.
Official Chinese inflation data showed the producer price index in the country rising 0.6% year-on-year in May, meeting expectations of analysts in a Reuters poll. The consumer price index also rose 2.7% year-on-year in the same period, its fastest pace since Feb2018 and in line with analyst expectations.
· Japan’s Nikkei share average fell on Wednesday, snapping a three-day winning streak, as the tough stance taken by U.S. President Donald Trump in his latest comments on trade negotiations with China fed worries of a global slowdown.
The Nikkei fell 0.4% to 21,129.72, with an immediate resistance seen at its current 100-day moving average at 21,272. The broader Topix shed 0.5% to 1,554.22. Declining shares outnumbered advancing ones 1,329 to 717.
· Over in South Korea, the Kospi slipped 0.14% to close at 2,108.75, while Australia’s ASX 200 shed earlier gains to end its trading day Down Under just below the flatline at 6,543.70.
Reference: Reuters, CNBC