U.S. Futures are trending down on Monday morning as markets worldwide fret over the current geopolitical condition in Israel. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.76%, 0.82%, and 0.76%, respectively, at 4:00 a.m. EST, October 9.
Hamas’ attack on Israel adds to the uncertainty of the macro backdrop, which is already reeling from the effects of higher interest rates and persistent inflation. Meanwhile, oil prices started surging on the news of the war as traders worried about the pressure on the oil supply. WTI crude oil futures were floating near $85.81 per barrel as of the last check. Also, the U.S. 10-year treasury yield was 4.79% at the time of writing.
All three major indices ended the prior week on a positive note, despite the stronger-than-expected nonfarm payrolls data released on October 6. The U.S. added 336,000 jobs in September, against the expectation of adding 160,000 jobs. Even so, the unemployment rate stayed unchanged at 3.8%, fuelling optimism that inflation could be cooling. Also, the Federal Reserve’s minutes from September’s FOMC meeting will be released on Wednesday, along with the Producer Price Index (PPI) data. Importantly, traders await the all-important Consumer Price Inflation (CPI) data on October 12.
The most noteworthy earnings coming this week are the reports of PepsiCo (PEP), Delta Air Lines (DAL), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), and UnitedHealth Group (UNH). Further, data from the China Passenger Car Association (CPCA) showed that Tesla’s China-made EV sales declined in September, while rival BYD continues to impress. In the meantime, the United Auto Workers (UAW) union is stressing the inclusion of battery plant workers in their negotiations with General Motors (GM), Ford (F), and Stellantis (STLA). The ongoing labor strike has entered its fourth week with little respite in sight.
Elsewhere, European indices are trading mixed on Monday morning amid the tensions rising from the Middle East. The sudden war between Palestine and Israel has caught global nations off-guard.
Asia-Pacific Markets End Mixed on Monday
Asia-Pacific indices ended mixed today as markets assessed the unsettling situation in the Middle East. Chinese markets resumed trading today after a four-day extended holiday. In the meantime, Japanese markets remain closed for trading today.
Moreover, Hong Kong’s Hang Seng index ended higher by 0.16% after remaining open for trading only in the second half. At the same time, China’s Shanghai Composite and Shenzhen Component indices ended down by 0.44% and 0.03%, respectively.
Source: Dow Jones Newswires