U.S. Futures Wobble In Early Trading, Global Markets Rebound, Geopolitical Risk Remains

The U.S. Futures Are Flat In Early Trading

The U.S. futures are indicating a flat open in early trading as the indices wobble over and under the break-even level. Although the fear of fallout from Soleiman’s killing has lessened the geopolitical risk remains. Now, traders are waiting for Iran’s response, a retaliation that could send the entire Mideast into an all-out war. Oil and gold prices are in decline along with risk-off sentiment but again, the risk of geopolitical fallout remains high.

In stock news, shares of Pier One Imports are down another 12% in today’s trading after the company reported earnings on Monday. The beleaguered retailers reported a stunning miss on both the top and bottom lines that threaten to send the company into bankruptcy. On the top line, revenue fell more than -13% while the company’s net loss widened to -$14.15 per share. The company also announced the closure of 450 stores and cancelations for the bulk of its orders for the 1st quarter of the year. Later in the week, traders will be on alert for reports from a swath of retailers that may also miss expectations.

In economic news, the U.S. trade deficit shrank more than expected to a multi-year low. The news is perhaps a confirmation the Phase One Trade Deal will be signed next week.

European Markets Rebound On Tuesday

The European markets are broadly higher on Tuesday as indices rebound from Monday’s losses. The German DAX is in the lead with a gain of 0.76% while the CAC and FTSE trail at 0.30% and 0.20%. On a sector basis, tech leads with an average gain of 1.5% but all sectors are moving higher.

In stock news, shares of Aston Martin are moving sharply lower after the company issued a profit warning. Shares of the stock are down more than -8.0% on the news.  UK retailer Marks & Spencer, Nokia, and Pandora are all up 3.0% to 4.0% in early trading.

Asian Market Move Higher, Japan Leads

Asian markets ended the day higher following weakness on Monday. The Japanese Nikkei is in the lead with a gain of 1.60% while the Australian ASX is a close second. Indices in China and Korea were less buoyant but still finished the day with solid gains. The move is driven by a reduction in fear and declining oil prices but risk to the market remains. Autos are among the region’s top gainers with advances in the range of 1.75% to 3.0%.