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Jun 13, 2016

U.S. Stock Market Future Indications, by MarketWatch - June 13, 2016: U.S. Stock Futures fall as Brexit Fears,Central-Bank Meetings Put Investors on Edge

marketwatch.com

Barbara Kollmeyer
 
U.S. stock futures joined global equity markets in a push lower on Monday, driven by fears that U.K. voters will choose to leave the European Union in just over a week and amid some nervousness ahead of central bank meetings in the U.S. and Japan.

Dow Jones Industrial Average futures YMU6, -0.38%  fell 52 points, or 0.3%, to 17,724, while S&P 500 futures ESU6, -0.41%  dropped 6.3 points, or 0.3%, to 2,081. Nasdaq-100 futures NQU6, -0.47%  slipped 15.25 points, or 0.3%, to 4,442.75.
A global selloff that began on Friday seemed determined to resume as Asian markets picked up the baton. The Nikkei 225 index NIK, -3.51% finished 3.5% lower as the Japanese yen EURJPY, -0.75% soared against rivals, hitting a three-year high against the euro.  The Shanghai Composite SHCOMP, -3.21%  lost more than 3%, as investors absorbed several economic reports out of China.
Read: China housing sales rise, but pace slows
“All the price action seen during the Asia session has been indicative of markets hunkering down and reducing risk,” Simon Smith, chief economist at FxPro, in a note to clients Monday.
Smith said the Federal Reserve statement due later this week could even be eclipsed by the Bank of Japan decision due Thursday, given the “unconventional nature” of policies coming from Tokyo in particular.
European stocks SXXP, -1.53%  dropped near 1%. Across other markets, oil prices CLU6, -1.17%  were under pressure, with Brent LCOQ6, -0.97%   briefly dropping under $50 a barrel, while gold GCQ6, +0.86%  was up about $7.70, or 0.6%, to $1,283.50.
Wall Street finished lower for a second straight session on Friday, as jittery investors rushed into government bonds, pushing the yield on the 10-year Treasury TMUBMUSD10Y, -1.46%  to a three-year low. The S&P 500 SPX, -0.92%  finished 19.41 points, or 0.9%, lower at 2,096.07 on Friday, and suffered its first weekly loss in four weeks, dropping 0.2%.
Read: Even with Fed’s help, S&P 500 march to record uncertain
Fed and data: No key economic data is on the calendar for Monday, but a hefty amount of updates will be sprinkled through out the week, including readings on retail sales and home construction.
Read: Muddled U.S. jobs picture puts Fed in a vice
The highlight of the week will be the Fed’s two-day policy meeting on Tuesday and Wednesday, where economists largely expect no change in monetary policy.
But the Fed will release the dot plot — which shows where each of the central bank’s 17 governors and regional bank presidents project interest rates—at 2 p.m. Eastern on Wednesday, alongside a policy statement and new economist forecasts. Fed Chairwoman Janet Yellen will hold a press conference 30 minutes after those releases.
“Investors should keep in mind that the upcoming Fed meeting is quite important, as it is not only going to be about the upcoming interest-rate hike but also about the future of interest rates by FOMC members,” said Naeem Aslam, chief market analyst at Think Forex, in a note to clients.
Read: Dot-plot to be best gauge of Fed’s mood after jobs debacle
Stocks to watch: Apple Inc. AAPL, -0.82%  will command attention on Monday as the iPhone maker will kick off its annual developers conference. The launch of the latest mobile operating system, and possibly new Watch and Mac hardware are all expected.
Computer-security group Symantec Corp. SYMC, -0.52%  said it would buy Blue Coat Systems Inc., whose technology is used to block dangerous or inappropriate websites, in a $4.65 billion deal. Blue Coat Chief Executive Greg Clark will take the CEO role at Symantec, whose CEO stepped down in April, after the deal closes.