Geo-political Tensions Continue To Cast Shadow On Wall Street

Initial trading on the U.S. Futures Index on Monday suggests a lower opening for Wall Street. Continuing geo-political tensions are adding worries to the investors. German Chancellor Angela Merkel’s party won a lackluster victory with only 33 percent of votes, down from 41.5 percent last year. Amid tensions from North Korea, Japanese Prime Minister Shizo Abe said he will be dissolving the parliament to seek a snap poll as his support were hit badly due to various scandals.

The Dallas Fed Manufacturing survey and a slew of Fed executive talks are closely monitored by the traders.

Federal Reserve Chair Janet Yellen is scheduled to address a gathering in Cleveland, Ohio in the forenoon on Tuesday.

As of 7.15 am ET, the Dow futures were slipping 6 points, the S&P 500 futures were shedding 1.00 points and the Nasdaq 100 futures were slipping 2.75 points.

U.S. stocks closed mixed on Friday. the Dow edged down 9.64 points or 22.349.59, the Nasdaq inched up 4.23 points or 0.1 percent to 6,426.92 and the S&P 500 crept up 1.62 points or 0.1 percent to 2,502.22.

On the economic front, the Chicago Fed National Activity Index for August will be released at 8.30 am ET. The economists are looking for consensus of 0.11, while it declined 0.01 in the previous month.

The Dallas Fed Manufacturing Survey for September will be issued at 10.30 am ET. The general activity index is expected to decline to 12.0 from 17.0 in August. Production Index in the prior month was 20.3.

New York Federal Reserve Bank President William Dudley will speak about workforce development at Onondaga Community College in Syracuse, New York, with audience Q&A at 8.30 am ET.

Chicago Federal Reserve Bank President Charles Evans will speak about current economic conditions or monetary policy at the Economic of Grand Rapids Luncheon Meeting, with audience and media Q&A, in Grand Rapids, Michigan at 12.40 pm.

Minneapolis Federal Reserve Bank President Neel Kashkari will participate in Eye of the Hawk Town Hall Event in Grand Forks, North Dakota, with audience Q&A at 6.30 am ET.

In the corporate segment, Consumer goods giant Unilever plc said it has agreed to acquire Carver Korea, a Seoul-based maker of toners and moisturizers, for 2.27 billion euros from Bain Capital Private Equity and Goldman Sachs. The transaction is subject to customary regulatory approvals. The acquisition is expected to strengthen Unilever’s expertise in the Asian beauty market, and its Personal Care category globally.


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