U.S. index futures are mixed in pre-market trading on Monday following a week of solid gains on Wall Street, driven by positive economic data and renewed optimism. Investors are cautiously awaiting Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole this week as the market seeks clues about the future direction of interest rates.
As of 4:51 AM, Dow Jones futures (DOWI:DJI) were up 17 points, or 0.05%. S&P 500 futures lost 0.05%, and Nasdaq-100 futures fell 0.22%. The 10-year Treasury yield stood at 3.864%.
In the commodities market, oil prices declined on Monday due to concerns about weaker demand in China, the world’s largest importer. Recent data showed a drop in Chinese diesel and gasoline exports and a slowing economy. Additionally, the market is concerned about the end of the peak driving season in the U.S. However, tensions in the Middle East and risks related to the war in Ukraine continue to support the market as investors monitor ceasefire negotiations that could impact oil supply.
West Texas Intermediate crude for September fell 0.65% to $76.15 per barrel, while Brent for October dropped 0.55% to $79.24 per barrel.
The U.S. economic agenda for Monday includes initial remarks from Fed Governor Christopher Waller at 9:15 AM. At 10 AM, the focus will shift to July’s leading economic indicators, expected to decline by 0.4% after a 0.2% increase in the previous month.
Asia-Pacific markets had mixed performances on Monday. Japan’s Nikkei 225 fell 1.77%, breaking a five-day winning streak, while China’s CSI 300 rose 0.34%, marking three consecutive days of gains. Australia’s S&P/ASX 200 saw a slight increase of 0.12%, and South Korea’s KOSPI dropped 0.85%. Hong Kong’s Hang Seng was up 0.73% near the close.
In Japan, machinery orders fell 1.7% in June year-over-year, contrary to expectations of a 1.8% increase. Additionally, the Japanese government plans to list Tokyo Metro by the end of October, with an estimated IPO valuation of $4.7 billion (700 billion yen), making it Japan’s largest IPO since 2018.
Last week, the U.S. and China signed financial cooperation agreements in Shanghai. According to the People’s Bank of China, the Financial Working Group meeting, led by Brent Neiman and Xuan Changneng, discussed financial stability, capital markets, and cross-border payments. Both parties exchanged contacts for crisis situations and explored collaboration opportunities.
In Singapore, the government will introduce the SkillsFuture Jobseeker Support Scheme to assist workers who have been laid off or are involuntarily unemployed. The program offers up to $4,561 for six months to low- and middle-income workers who engage in training and actively seek employment.
In India, the Supreme Court will begin hearings this week on the alleged rape and murder of a medical intern in Kolkata. The court took up the case after protests and a nationwide doctors’ strike. The case, initially mishandled by local police, is now under investigation by the Federal Central Bureau of Investigation.
European markets are trading mixed on Monday after a week of gains, with the tech sector opening lower and the mining sector rising.
On Friday, the Dow Jones rose 0.24%, the S&P 500 advanced 0.20%, and the Nasdaq gained 0.21%. The Nasdaq and S&P 500 closed higher for the seventh consecutive session, reflecting recent positive momentum and easing economic concerns. Expectations of a Federal Reserve interest rate cut also boosted the market. In the previous week, the Nasdaq surged 5.3%, the S&P 500 rose 3.9%, and the Dow gained 2.9%.
In the earnings report front, ZIM Integrated Shipping Services (NYSE:ZIM), Estée Lauder (NYSE:EL), Freightos (NASDAQ:CRGO) are expected to report before the market opens.
After the close, numbers from Palo Alto Networks (NASDAQ:PANW), Fabrinet (NYSE:FN), Bit Digital (NASDAQ:BTBT), Agora Inc (NASDAQ:API), American Resources Corporation (NASDAQ:AREC), Flexsteel (NASDAQ:FLXS), Fluent (NASDAQ:FLNT), Hesai Group (NASDAQ:HSAI), E.C.D. Automotive Design (NASDAQ:ECDA), and more are anticipated.