US Stock Futures Lower Ahead Of Fed Speakers; Bank Of England Expands Emergency Bond Buying

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Tuesday after the Nasdaq index recorded its lowest finish since July 2020 in the previous session. The Philadelphia SE Semiconductor index fell around 3.5% on Monday after the US placed restrictions on exports of certain high-end chips to China.

The NFIB small business optimism index for September is scheduled for release at 6:00 a.m. ET. The small business optimism index is expected to decline slightly to 91.5 in September from previous reading of 91.8.

Philadelphia Fed President Patrick Harker is set to speak at 11:30 a.m. ET, while Federal Reserve Bank of Cleveland President Loretta Mester will speak at 12:00 p.m. ET.

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Futures for the Dow Jones Industrial Average dropped 221 points to 29,039.00 while the Standard & Poor’s 500 index futures fell 30.25 points to 3,595.00. Futures for the Nasdaq index fell 87 points to 10,897.50.

Commodities

Oil prices traded lower as Brent crude futures fell 1.2% to trade at $95.05 per barrel, while US WTI crude futures fell 1.3% to trade at $89.96 a barrel.

Gold futures fell 0.2% to trade at $1,672.20 an ounce, while silver traded down 1.2% at $19.385 an ounce on Tuesday.

A Peek Into Global Markets

Europe Markets

European markets were lower today. The STOXX Europe 600 Index fell 1%, London’s FTSE 100 fell 1.2% while Spain’s IBEX 35 Index fell 0.9%. The French CAC 40 Index fell 0.7%, while German DAX dropped 0.8%.

The Bank of England widened its emergency bond buying operation to include purchases of inflation-linked gilts. The jobless rate in the UK declined to 3.5% in the three months to August, versus 3.6% in the earlier period, while average weekly earnings including bonuses rose by 6.0% year-over-year to GBP 617 in the same period. Industrial production in Italy surged by 2.3% from a month ago in August.

Asia-Pacific Markets

Asian markets traded mostly lower today. Japan's Nikkei 225 fell 2.64%, China’s Composite Index rose 0.19%, while Hong Kong’s Hang Seng Index fell 2.23%. Australia’s S&P/ASX 200 fell 0.3%, while India’s BSE Sensex fell 0.6%.

Auto sales in China climbed 25.7% year-over-year to 2.61 million units in September, compared to a 32.1% surge in the prior month, according to data from the China Association of Automobile Manufacturers. Japanese current account surplus narrowed to JPY 58.9 billion in August from JPY 1,500 billion in the same month a year ago, while the gauge for Japanese service sector sentiment climbed by 2.9 points from the previous month to a reading of 48.4 for September. The Westpac-Melbourne Institute Index of Consumer Sentiment for Australia fell by 0.9% month-over-month to 83.7 in October, while NAB business confidence index declined 5 points to 5 in September. Private house approvals in Australia rose by 4.1% from a month ago to 10,459 units in August.

Broker Recommendation

Wolfe Research initiated coverage on TransDigm Group Incorporated TDG with an Outperform rating and announced a price target of $650.

TransDigm shares fell 0.4% to close at $531.52 on Monday.

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Breaking News

• Russian President Vladimir Putin warned of more "severe" retaliation against Ukraine after several explosions hit the center of the war-torn nation in response to the Crimea bridge explosion.
• Coinbase Inc. COIN said on Monday that it obtained “in-principle approval” to provide cryptocurrency services in Singapore from the Monetary Authority of Singapore.
• Leggett & Platt, Incorporated LEG lowered its earnings and sales projections for full year 2022.
• SpaceX’s Starlink announced that it has now launched its services in Japan, making it the first Asian nation to get Elon Musk’s high-speed internet service.

Check out other breaking news here