Investing.com - Here are the top five things you need to know in financial markets on Tuesday, September 4:
1. U.S. Stocks Futures Point to Flat Open
U.S. stock index futures pointed to a flat open on Wall Street, as investors returning from the Labor Day holiday weekend awaited further developments in the ongoing trade spat between the U.S. and its major trading partners.
At 5:45AM ET, the blue-chip Dow futures were down 12 points, or less than 0.1%, the S&P 500 futures tacked on 2 points, while the tech-heavy Nasdaq 100 futures indicated a gain of 12 points, or roughly 0.1%.
Markets stateside were closed on Monday because of Labor Day.
On the earnings front, results today are expected from Conns (NASDAQ:CONN), RH (NYSE:RH), and Coupa Software (NASDAQ:COUP).
Elsewhere, in Europe, nearly all of the region's major bourses were lower in mid-morning hours, with most sectors in the red.
Earlier, in Asia, markets ended mostly higher after a slightly turbulent trading day, which saw most bourses in the region reversing earlier losses in the afternoon.
The Shanghai Composite gained 1.1% after five straight days of losses.
2. Dollar Stands Tall Amid Trade, Emerging Market Woes
Away from equities, the dollar rose to one-and-a-half week highs against a currency basket, as persistent concerns over global trade tensions and stresses in emerging markets underpinned safe-haven demand for the greenback.
Investors remained on edge ahead of the resumption of trade talks between the U.S. and Canada on Wednesday, after President Donald Trump warned over the weekend that there was no need to keep Canada in NAFTA.
Concerns over an escalation of the trade row between the U.S. and China also remained to the fore.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was 0.45% higher at 95.49, the best level since August 24.
Meanwhile, in emerging markets, Turkey’s lira was pressured lower amid lingering concerns over the country’s economic and currency crisis.
Argentina’s peso also fell, re-approaching record lows against the dollar as the country’s government scrambled to deal with a fresh economic crisis.
Emerging market currencies, including the lira, peso, South African rand, Brazilian real, Indonesian rupiah and Indian rupee have suffered in recent weeks, amid concerns that higher U.S. interest rates will pressure countries that have borrowed heavily in dollars in recent years.
3. Oil Jumps to 8-Week Highs Ahead of Hurricane Gordon
In commodities, oil prices were higher, with the U.S. benchmark breaking through $71 per barrel, after two Gulf of Mexico oil platforms were evacuated in preparation for a hurricane.
Anadarko Petroleum (NYSE:APC) said on Monday it had evacuated and shut production at two oil platforms in the Gulf ahead of the approach of Gordon, which is expected to come ashore as a hurricane.
U.S. West Texas Intermediate (WTI) crude futures were up $1.26, or 1.8%, at $71.06 a barrel, the highest since July 13.
International Brent crude oil futures were at $79.16 per barrel, $1.01, or 1.3%, higher from their last close.
Crude prices have been on a tear lately, with Brent prices by more than 10% since mid-August, as looming U.S. sanctions on Iran are widely expected to lead to a tighter market.
4. Full Slate of Economic Data Ahead
Investors will be greeted by a full slate of economic data as they return from the Labor Day holiday weekend.
Today's highlight will be the August reports on manufacturing activity from Markit Economics and the Institute of Supply Management due at 9:45AM ET and 10AM ET respectively.
Investors will pay particular attention to the surveys for any impact tariffs are having on the sector.
Reports on construction spending and auto sales for August are also on the agenda.
Economists reckon the data will do little to alter expectations that the Federal Reserve will hike interest rates two more times this year, with the next move higher coming at its September 25-26 meeting.
5. Nike Shares in Focus
Nike shares are expected to be in focus today after the sports apparel giant chose Colin Kaepernick, the first NFL player to kneel during the national anthem as a protest against racism, as one of the faces for advertisements commemorating the 30th anniversary of its "Just Do It" slogan, a move that could draw U.S. President Donald Trump's ire.
Kaepernick, who was a quarterback with the San Francisco 49ers for six years, stirred a national controversy by taking a knee while the anthem was played before games during the NFL's 2016 season to draw attention to police killings of black men and other issues.
The anthem protests, soon embraced by other players, raised the ire of some NFL fans and Trump, who has said he would love to see NFL owners fire football players who disrespect the American flag.
Shares (NYSE:NKE) were 0.6% lower in premarket trade at $81.71.