•   
  •   
  •   

Offbeat US stocks set to open lower as central banks tighten policy

12:52  14 june  2018
12:52  14 june  2018 Source:   cnbc.com

US stocks set for a positive open on expectations of an end to easy money

  US stocks set for a positive open on expectations of an end to easy money U.S. stock index futures rose ahead of the open on Thursday, as investors grow confident that higher interest rates are underway. Around 4:09 a.m. ET, Dow futures rose 96 points, indicating a higher open of 92.61 points. The Nasdaq and the S&P 500 futures indicated a solid start to the session for their respective markets too.The moves in pre-market trade followed a strong session Wednesday with the Dow closing 346.41 points higher. The move was supported by bank stocks that surged on expectations of an end to easy money in Europe and of higher interest rates.

Bank stocks fell after the European Central Bank said it would hold off on raising rates until next year, sending Treasury yields lower . The Labor Department also reported that weekly jobless claims fell to a near 44½-year- low last week, pointing to a tightening jobs market.

The central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Central banks around the world use monetary policy to regulate specific factors within the economy.

  US stocks set to open lower as central banks tighten policy © Richard Drew/AP Photo   U.S. stock index futures pointed to a lower open Thursday morning as investors digested comments from the Federal Reserve.

At around 4:06 a.m. ET, Dow futures slipped 27 points, indicating a negative open of 31.20 points. The Nasdaq and the S&P 500 futures also indicated a lower start to the session for their respective markets.

The moves in pre-market trade came after the Federal Reserve announced a new rate hike and indicated that two other increases are possible until the end of the year. As a result, the Dow fell about 120 points as traders expect that the higher rates will bring higher costs for companies.

US stocks expected to tumble at the open as US prepares China tariffs

  US stocks expected to tumble at the open as US prepares China tariffs U.S. stock index futures fell deep into negative territory ahead of Friday's open, as the topic of trade continues to resurface. Around 5:30 a.m. ET, Dow futures slipped 133 points, indicating a negative open of 111.31 points. The Nasdaq and the S&P 500 futures also indicated a downbeat start to the session for their respective markets.The moves in pre-market trade come after U.S. markets finished the previous day's trading on a mixed note. The Nasdaq composite hit an all-time high during Thursday's session, with the S&P 500 also closing in the black.

Jan 31 (Reuters) - U . S . stocks looked set to open lower on Tuesday following disappointing results from a clutch of Dow stocks and as investors fretted over President Donald Trump's policies . The central bank is not expected to raise interest rates, after a move in December, but investors will focus

A report said the European Central Bank is urging Portugal to follow Ireland's example and seek financial aid from the International Monetary Fund, while the Portuguese Basic resources stocks declined in Europe on speculation over further Chinese monetary policy tightening to cool inflation.

In Europe, policymakers at the European Central Bank are also due to discuss monetary tightening on Thursday.

In terms of data, there will be jobless claims and retail sales due at 8:15 a.m. ET and 8:30 a.m. ET, respectively.

Meantime in earnings, Adobe Systems is scheduled to publish its latest corporate results.

In oil markets, crude prices eased Thursday, on higher output. Brent traded 0.4 percent lower at $76.40 a barrel and WTI was off by 0.11 percent at $66.58.

European Central Bank to weigh end to stimulus program .
The European Central Bank could signal readiness to end its bond-purchase stimulus at Thursday's meeting of its 25-member governing council, with analysts pointing to the end of the year as a likely final exit date.Load Error

—   Share news in the SOC. Networks

Topical videos:

This is interesting!