Stocks May Show Initial Move To The Downside – U.S. Commentary

Stocks May Show Initial Move To The Downside – U.S. Commentary

Stocks may move to the downside in early trading on Tuesday after ending the previous session mostly higher. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 60 points.

Lingering trade concerns may weigh on the markets even after President Donald Trump announced a new trade deal between the U.S., Mexico, and Canada to replace the North American Free Trade Agreement.

Trump praised the new United States-Mexico-Canada Agreement as an “historic transaction” but also said it is “too early to talk” with China about the escalating trade dispute between the two countries.

“Can’t talk now because they’re not ready,” Trump said of China. “Because they have been ripping us for so many years, it doesn’t happen that quickly.”

He added, “If politically, people force it too quickly, you’re not going to make the right deal for our workers and for our country.”

Reports of the last-minute cancellation of U.S. Defense Secretary Jim Mattis’ trip to China have added to the concerns about rising tensions.

Trading activity may be somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.

A speech by Federal Reserve Chairman Jerome Powell at the National Association for Business Economics Annual Meeting in Boston may attract some attention.

After an early move to the upside, stocks gave back some ground over the course of the trading session on Monday. The major averages pulled back off their highs of the session, with the tech-heavy Nasdaq sliding into negative territory.

The major averages eventually ended the day mixed. While the Nasdaq edged down 9.05 points or 0.1 percent to 8,037.30, the Dow climbed 192.90 points or 0.7 percent to 26,651.21 and the S&P 500 rose 10.61 points or 0.4 percent to 2,924.59.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday, although Japan’s Nikkei 225 Index bucked the downtrend and inched up by 0.1 percent. Hong Kong’s Hang Seng Index plunged by 2.4 percent, while Australia’s S&P/ASX 200 Index slid by 0.8 percent.

The major European markets have also moved to the downside on the day. While the U.K.’s FTSE 100 Index has fallen by 0.3 percent, the French CAC 40 Index and the German DAX Index are both down by 0.7 percent.

In commodities trading, crude oil futures are inching up $0.03 to $75.33 barrel after soaring $2.05 to $75.30 a barrel on Monday. Meanwhile, after falling $4.50 to $1,191.70 an ounce in the previous session, gold futures are climbing $5.50 to $1,197.20 an ounce.

On the currency front, the U.S. dollar is trading at 113.80 yen compared to the 113.93 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1538 compared to yesterday’s $1.1578.

by RTTNews Staff Writer

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