⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Stocks - Futures Turn Lower on Trade Pessimism

Published 10/07/2019, 06:47 AM
Updated 10/07/2019, 06:54 AM
© Reuters.

Investing.com -- U.S. futures turned lower at the start of the week after a report dampened hopes of any meaningful truce in the trade dispute between China and the U.S.

Talks between the two sides' top trade negotiators are due to resume on Thursday, but Bloomberg cast doubt on any major progress, saying that the Chinese position had hardened and that it is no longer minded to make concessions on key issues such as subsidies to state-owned enterprises. It's unclear however, how serious Beijing had ever been about making such concessions.

By 7:10 AM ET (1110 GMT), Dow futures were down 44 points, or 0.2%, while S&P 500 Futures and Nasdaq 100 futures were down in parallel.

Tech stocks in general, and Broadcom (NASDAQ:AVGO) in particular, were set to face fresh pressure after a report that the EU's antitrust authorities are set to step up their clampdown on what they see as abuse of market power by U.S. tech giants.

The Financial Times reported that the EU is set to issue "interim" measures forcing Broadcom (NASDAQ:AVGO) to suspend sales practises it suspects of being anti-competitive, even before the European Commission's investigation into the issue has run its course. In Broadcom's case, this refers to contractual requirements which stop Broadcom's customers from buying chips elsewhere.

Elsewhere, GM stock is also likely to be in focus after battle-lines hardened in the company's strike, which is now entering a fourth week. United Auto Workers representatives said negotiations between the two sides had "taken a turn for the worse," with GM refusing to make assurances of job security for its U.S. workforce as it divvies up future production between the U.S. and Mexico.

ADRs in two major European banks will also be under the spotlight later. HSBC was reported over the weekend to be planning 10,000 job cuts - some 4% of its global workforce - as it tries to shore up profitability by paring back its operations in Europe. Meanwhile Credit Suisse (SIX:CSGN) Group, which only last week drew a line under a reputation-damaging investigation into former Global Wealth head Iqbal Khan, is reportedly facing up to $1.4 billion in legal damages for mis-selling mortgages prior to 2008 - more than twice what it has set aside.

The dollar index, which tracks the greenback against a basket of currencies, was effectively unchanged from late Thursday at 98.505, while gold futures were down 0.6% at $1,504.45 a troy ounce. Crude oil futures were 1.3% higher at $53.48 a barrel.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.