Cash equities markets in the world's largest economy, seen by some analysts as teetering on the brink of recession, are due to resume trading at 9:30 a.m. EST having been closed on Monday for Martin Luther King Day.
"All eyes will be on the U.S. market's performance today," ABN AMRO said in a note. U.S. equities tend to set the pace for many other stock markets.
Speculation of a rate cut by the Federal Reserve before the next scheduled Fed meeting appeared to provide a sliver of support, lifting the U.S. stock index futures from early morning lows although they remained deep in the red.
At 5:40 a.m. EST, S&P 500 futures were down 5.2 percent, having fallen as much as 5.3 percent earlier. Dow Jones futures fell 4.6 percent and Nasdaq futures dropped 5.5 percent.
The indicative Dow Jones index, which tracks how the Dow stocks trade in Frankfurt, was 5.9 percent lower.
In a sign of investor risk aversion, the yield on two-year U.S. Treasury bonds briefly fell below 2 percent for the first time in almost four years as fears of a U.S. recession spread throughout global financial markets.
S&P 500 companies scheduled to report quarterly results on Tuesday include bond insurer AMBAC Financial Group, a unit of which lost a crucial triple-A rating on Friday, as well as iPod, iPhone and computer maker Apple, drugmaker Johnson & Johnson, and Fifth Third Bancorp and Bank of America.
No comments:
Post a Comment