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14 Jan 2015
Wall Street to open in red
FXStreet (Mumbai) - The US stocks are likely to open sharply lower due to concerns of anemic consumption in the US despite lower energy prices and a weak global growth forecast released by the World Bank earlier today.
At the time of writing, the DJIA futures traded 1.34% lower at 17,296.50, while the S&P 500 futures traded 1.21% lower at 1991.65. Meanwhile, the NASDAQ futures and the Russell 2000 futures are trading 0.089% and 1.15% lower at 4117.20 and 1164.00 levels respectively. Consequently, the S&P 500 VIX futures are trading 7.08% higher at 21.55 levels.
The stock futures extended losses after the December advance retail sales number in the US came-in at -0.9%, missing the estimate of -0.1%, and down from the November’s 0.7% rise. The retail sales ex-auto number also missed forecasts to print at -1.00%. Earlier today, the World Bank report said the global economy will expand 3% in 2015, down from a forecast of 3.4% in June.
Consequently, the US 30-yr treasury yield fell to a record low of 2.458%. On similar lines the US 10-yr yield also weakened to 1.784%. The bearish global growth forecasts also pushed the Bloomberg Commodity Index of 22 energy, agriculture and metal products slid to the lowest level since November 2002 yesterday after dropping 17 % last year.
Meanwhile, in overseas trading, the Asian market declined taking cues from the overnight weakness in the equity markets, while the major European equity markets are trading deep in the red.
At the time of writing, the DJIA futures traded 1.34% lower at 17,296.50, while the S&P 500 futures traded 1.21% lower at 1991.65. Meanwhile, the NASDAQ futures and the Russell 2000 futures are trading 0.089% and 1.15% lower at 4117.20 and 1164.00 levels respectively. Consequently, the S&P 500 VIX futures are trading 7.08% higher at 21.55 levels.
The stock futures extended losses after the December advance retail sales number in the US came-in at -0.9%, missing the estimate of -0.1%, and down from the November’s 0.7% rise. The retail sales ex-auto number also missed forecasts to print at -1.00%. Earlier today, the World Bank report said the global economy will expand 3% in 2015, down from a forecast of 3.4% in June.
Consequently, the US 30-yr treasury yield fell to a record low of 2.458%. On similar lines the US 10-yr yield also weakened to 1.784%. The bearish global growth forecasts also pushed the Bloomberg Commodity Index of 22 energy, agriculture and metal products slid to the lowest level since November 2002 yesterday after dropping 17 % last year.
Meanwhile, in overseas trading, the Asian market declined taking cues from the overnight weakness in the equity markets, while the major European equity markets are trading deep in the red.