Futures Fall After Wild Session, EU Flat On Brexit Angst, Asia Rebounds On Trade Hope

Global markets are mixed following a round of wildly disparate reports regarding the status of trade talks.
Thomas Hughes

The U.S. Futures Are Down After A Volatile Session

The U.S. futures are down after a wild overnight session. The Dow Jones was indicated up by triple digits after an initial report raised hopes for a trade deal. Later in the session, following a string of reports out of China, hopes faded as trade talks are seen stalling. The initial report is that President Trump would allow sales of non-sensitive equipment to Huawei. The later reports say talks have stalled due to a lack of progress. China won’t budge on forced technology transfers and demands the U.S. reverse a decision to blacklist 28 companies earlier this week.

Trade talks are still slated for today in Washington but it is unclear if progress will be made. Vice Premier Liu He is now expected to leave a day early. The Dow Jones Industrial Average is down about -0.20% while the S&P 500 and NASDAQ Composite are both down about -0.15%.

In economic news, the U.S. consumer price index was unchanged over the last month. Economists had been expecting a gain of 0.1%. This news ups the chances for an October rate cut but do little to alter the general outlook. The U.S. economy is still on solid footing.

European Markets Are Flat At Midday

The EU markets are flat and mixed at midday as Brexit angst and trade concerns weigh on sentiment. In Brexit news, negotiations have been delayed by a day and are expected to restart on Friday. The EU has told the UK that significant concessions must be made if there is to be a new deal before the October 31 deadline. The DAX and FTSE are both trading near 0.0% while the CAC is up about 0.25%.

In economic news, UK GDP came in at 0.3% in the last month versus an expected 0.2%. This news, along with a 0.1% upward revision to the previous month, greatly reduces the odds of a 3rd quarter recession. In stock news, shares of biosciences firm Chr. Hansen fell -13% after missing earnings estimates.

Asian Equities Rebound On Trade Hopes

Asian equities rebound on news the U.S. would ease restrictions on Huawei. The major indices closed with gains in the range of 0.0% to 0.78% and closed before reports that sent U.S. markets plunging. The only index to shed value in today’s session is the Korean Kospi, it fell nearly -0.90%. Trading in Korea was impacted by a -2.32% decline in Hyundai Motors. In Japan, factory orders fell for the 2nd month and threaten to extend a manufacturing recession in the country.

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