US Futures Point to Lower Open as Focus Shifts to US-China Trade Talks and NFP Employment Report Tomorrow

Trade Talks between China and the U.S, Equities Losing Ground Early

Asian equities finished today’s trading with declines on most Indexes. However, the Shanghai Shenzhen composite was able to achieve gains. Trade talks between China and the U.S will be getting underway soon and both nations continue to make rather strong statements. While many analysts believe many of the proposed trade tariffs will be avoided, worries persist among investors. Wall Street lost ground yesterday in the wake of the Federal Reserve’s Monetary Policy Statement and point to a lower open.

The Fed essentially said it will continue to make gradual interest rate hikes as needed, and the central bank pointed out employment is strong and inflation is beginning to hit its projected two percent target. European equities have been negative thus far today.

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June Hike Expected from Fed, Impact Expected Tomorrow via U.S Data

European Gross Domestic Product results yesterday met their target, but remain lackluster. The Euro and Pound, however, have added incremental value this morning against the U.S Dollar. The British currency did stumble to new lows versus the U.S Dollar yesterday but has found some buyers the past twelve hours. Tomorrow’s jobs data from the States will impact forex, particularly if the Average Hourly Earnings numbers produce a stronger result than expected.

Many investors have already positioned themselves for another interest rate hike from the Federal Reserve in June, and speculators may believe a reversal higher for the Euro and Pound could be in the cards near term after touching critical support levels this week.

Gold Could Attract Speculative Traders, Under a Barrage of Pressure

Gold is near 1308.00 U.S Dollars per ounce. While the precious metal hovers over important support, it may attract a speculative response at these price levels. Gold has been under a barrage of pressure because of the resurgent U.S Dollar, but traders may be tempted to begin looking at reversals.

Trade Numbers from Canada, U.S Services Data Soon via ISM Report

The U.S will see Services data via a Non-Manufacturing Purchasing Managers Index report at 14:00 GMT.

• 12:30 PM GMT, Canada, Trade Balance
• 14:00 PM GMT, U.S, ISM Non-Manufacturing PMI

Yaron Mazor is a senior analyst at SuperTraderTV.

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