US investors come back from a public holiday to a weak European equity market and a stronger US dollar which has been hurting many emerging markets such as Argentina and Turkey over the past few weeks. US futures markets are showing some weakness at present as markets continue to be concerned with possible escalation of the US/China trade dispute. Markets are convinced that Trump is going to increase the tariffs on Chinese goods by up to US$200 bn
Expected opening prices are as follows:
Dow Jones - 25885 down 0.49% / S&P500 - 2895 down 0.45% / Nasdaq 100 - 7627 down 0.66%
Focus is on Nike - down up to 3% , after they launched an ad campaign featuring Colin Kapernick , an ex NFL quarterback which will be divisive. Also Goldman is covering Tesla with a negative report suggesting the company share price will drop by 30%
The current FX prices are EUR at 1.1547 down 0.60% , the GBP is at 1.2842 down 0.23% , and the JPY is at 111.39 weaker by 0.25%. Gold is down sharply at 1191 down 0.84%.
Bond yields are holding mid range in the US with US10 at 2.85% with strong buying from European funds and emerging market companies.
We expect some Manufacturing PMI numbers out later today with expectations for a number close to 57.5 , down on 58.1 last month.