Geopolitical Tensions To Reflect On Wall Street

Tensions brewing from geopolitical developments keeps the market on alert. The latest threat is from North Korea’s consideration of a nuclear test, discarding President Donald Trump warnings. The impact of hurricanes will also be reflected on the negative mood. The Purchase Managers’ flash index is keenly awaited by the investors. Initial trading on the U.S. Futures Index suggest that Wall Street might open in the red. Asian shares closed mostly lower. European shares are trading currently up.

As of 7 am ET, the Dow futures were slipping 10 points, the S&P 500 futures were shedding 2.50 points and the Nasdaq 100 futures were slipping 10.25 points.

U.S. stocks closed lower on Thursday. The Dow dipped 53.36 points or 0.2 percent to 22,359.23, the Nasdaq slid 33.35 points or 0.5 percent to 6,422.69 and the S&P 500 fell 7.64 points or 0.3 percent to 2,500.60.

On the economic front, the flash Composite Purchasing Managers’ Index for the September will be issued at 9.45 am ET. The economist are looking for consensus of 54.9, down from 56.0 a month ago.

Atlanta Fed Business Inflation Expectations for September will be published at 10.00 am ET. The prior month business inflation expectations were up 1.9 percent.

Kansas City Federal Reserve Bank President Esther George will deliver the keynote address at the “Global Oil Supply & Demand: Prospects for Greater Balance” Conference in Oklahoma City, with audience Q&A at 9.30 am ET.

Baker Hughes Rig Count for the week will be issued at 1.00 pm ET. In the previous week, the North American Rig Count was 1148, while U.S. rig count was 936.

In the corporate sector, Lamprell plc reported first-half pretax profit of $1.2 million compared to a loss of $4.2 million, previous year. Profit per share was 0.30 cents compared to a loss per share of 1.27 cents. First-half total revenue was $159.2 million, significantly lower than $451.3 million, prior year.

Asian stocks fell broadly on Friday. S&P Global Ratings downgraded China’s credit rating, citing higher economic and financial risks after a prolonged period of strong credit growth. The ratings agency also lowered its sovereign rating on Hong Kong, citing spillover risks. Chinese stocks ended off their day’s lows. The benchmark Shanghai Composite index slipped 5.28 points or 0.16 percent to 3,352.53 while Hong Kong’s Hang Seng index finished down 229.80 points or 0.82 percent at 27,880.53.

Japanese shares slipped from a two-year high. The Nikkei average ended down 51.03 points…

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