03.08.2016 14:45:25

Stocks May Continue To Follow Overseas Markets Lower - U.S. Commentary

(RTTNews) - After moving mostly lower over the course of the previous session, stocks may see some further downside in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 28 points.

The downward momentum for the markets comes amid continued weakness overseas amid disappointment with Japan's stimulus plan.

The minutes of the Bank of Japan's June meeting also weighed on the markets amid indications there was dissent as the policymakers discussed further stimulus.

The dissension in the ranks has raised doubts if the bank will enact further easing measures on top what was announced in July.

On the U.S. economic front, payroll processor ADP recently released a report showing that private sector employment rose by a little more than expected in the month of July.

ADP said private sector employment increased by 179,000 jobs in July after climbing by an upwardly revised 176,000 jobs in June.

Economists had expected employment to grow by about 170,000 jobs compared to the addition of 172,000 jobs originally reported for the previous month.

"Job growth remains strong, but is moderating as the economy approaches full employment," said Mark Zandi, chief economist of Moody's Analytics.

"Businesses are having a more difficult time filling open job positions, which are near record highs," he added. "The nation's biggest economic problem will soon be the lack of available workers."

Shortly after the start of trading, the Institute for Supply Management is scheduled to release a separate report on activity in the service sector in the month of July.

Economists expect the ISM's non-manufacturing index to edge down to 56.0 in July from 56.5, although a reading above 50 would still indicate growth in the service sector.

After turning in lackluster performances for several straight days, stocks moved mostly lower during trading on Tuesday. The losses on the day came after the major averages closed mixed for five consecutive sessions.

The major averages ended the day well off their lows for the session but still firmly in negative territory. The Dow fell 90.74 points or 0.5 percent to 18,313.77, the Nasdaq slumped 46.46 points or 0.9 percent to 5,137.73 and the S&P 500 slid 13.81 points or 0.6 percent to 2,157.03.

In overseas trading, most stock markets across the Asia-Pacific region moved notably lower during trading on Wednesday. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index tumbled by 1.9 percent and 1.8 percent, respectively.

The major European markets have also moved to the downside on the day. While the French CAC 40 Index has slid by 0.6 percent, the U.K.'s FTSE 100 Index is down by 0.3 percent and the German DAX Index is down by 0.1 percent.

In commodities trading, crude oil futures are rising $0.29 to $39.80 a barrel after falling $0.55 to $39.51 a barrel in the previous session. Meanwhile, an ounce of gold is currently trading at $1,371, down $1.60 from the previous session's close of $1,372.60. On Tuesday, gold rose $13.

On the currency front, the U.S. dollar is trading at 101.06 yen compared to the 100.89 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1195 compared to yesterday's $1.1224.

Eintrag hinzufügen
Hinweis: Sie möchten dieses Wertpapier günstig handeln? Sparen Sie sich unnötige Gebühren! Bei finanzen.net Brokerage handeln Sie Ihre Wertpapiere für nur 5 Euro Orderprovision* pro Trade? Hier informieren!
Es ist ein Fehler aufgetreten!