U.S. Stocks May Come Under Pressure On Trump Comments About Trade Deal
(RTTNews) - After ending the previous session notably lower, stocks may see some further downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 218 points.
Renewed trade concerns may weigh on the markets after President Donald Trump suggested he might prefer to wait until after the 2020 elections to strike a trade deal with China.
Trump told reporters at a NATO summit in London there is no deadline to reach a trade deal, adding, "In some ways, I think it's better to wait until after the election."
"But they want to make a deal now, and we'll see whether or not the deal's going to be right; it's got to be right," Trump said.
Trump claimed a potential trade deal is only dependent on whether he wants to sign it, because the U.S. is "doing very well" and China is "having by far the worst year that they have had in 57 years."
The comments from the president added to rising trade concerns after his administration threatened to impose duties of up to 100 percent on $2.4 billion in French imports, including champagne and handbags.
The threat comes after the administration concluded France's new digital services tax discriminates against U.S. companies such as Google (GOOGL), Apple (AAPL), Facebook (FB), and Amazon (AMZN).
Nonetheless, overall trading activity may be somewhat subdued, with a lack of major U.S. economic data keeping some traders on the sidelines.
Traders may also be reluctant to make significant moves ahead of the release of the closely watched monthly jobs report on Friday.
Stocks showed a notable move to the downside during trading on Monday, extending the pullback seen on Friday. With the drop on the day, the major averages pulled back further off the record highs set last Wednesday.
The Dow ended the day just off its lows of the session, down 268.37 points or 1 percent at 27,783.04, while the Nasdaq tumbled 97.48 points or 1.1 percent to 8,567.99 and the S&P 500 slumped 27.11 points or 0.9 percent to 3,113.87.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index slid by 0.6 percent, while Australia's S&P/ASX 200 Index plunged by 2.2 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the German DAX Index is up by 0.1 percent, the French CAC 40 Index is down by 1 percent and the U.K.'s FTSE 100 Index is down by 1.6 percent.
In commodities trading, crude oil futures are falling $0.53 to $55.43 a barrel after climbing $0.79 to $55.96 a barrel on Monday. Meanwhile, after slipping $3.50 to $1,469.20 an ounce in the previous session, gold futures are jumping $10.70 to $1,479.90 an ounce.
On the currency front, the U.S. dollar is trading at 108.72 yen compared to the 108.98 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1070 compared to yesterday's $1.1079.
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