Stocks May Move To The Downside In Early Trading - U.S. Commentary

(RTTNews) - After turning in a mixed performance last week, stocks are likely to move mostly lower in early trading on Monday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 68 points.

Stocks may come under pressure as traders react to the mass shooting in a club in Orlando over the weekend, which left 50 people dead.

The attack has raised some concerns about the economy amid worries that Americans may be more reluctant to enjoy the nightlife.

Nonetheless, trading activity is likely to be somewhat subdued ahead of the Federal Reserve's monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to the accompanying statement.

While the Fed announcement will be the main focus this week, traders will also be presented with a slew of U.S. economic data.

The reports on retail sales, industrial production, housing starts and producer and consumer price inflation could impact the outlook for future Fed decisions.

Meanwhile, shares of LinkedIn (LNKD) are moving sharply higher in pre-market trading after the company agreed to be acquired by Microsoft (MSFT) in an all-cash transaction valued at $26.2 billion.

Stocks moved notably lower over the course of the trading day last Friday, adding to the modest losses posted on Thursday. With the decrease on the day, the major averages pulled back further off Wednesday's highs.

The major averages climbed off their worst levels going into the close but remained firmly negative. The Dow fell 119.85 points or 0.7 percent to 17,865.34, the Nasdaq tumbled 64.07 points or 1.3 percent to 4,894.55 and the S&P 500 slid 19.41 points or 0.9 percent to 2,096.07.

For the week, the major averages turned in mixed performance. While the Dow rose by 0.3 percent, the S&P 500 edged down by 0.1 percent and the Nasdaq slumped by 1 percent.

In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Monday. Japan's Nikkei 225 Index plunged by 3.5 percent, while Hong Kong's Hang Seng Index tumbled by 2.5 percent.

The major European markets have also come under pressure on the day. While the U.K.'s FTSE 100 Index has fallen by 0.7 percent, the German DAX Index and the French CAC 40 Index are both down by 1.4 percent.

In commodities trading, crude oil futures are sliding $0.65 to $48.42 a barrel after rising $0.45 or 0.9 percent to $49.07 a barrel in the previous week. Gold futures, which rallied $33 or 2.7 percent to $1,275.90 an ounce last week, are climbing $13 to $1,288.90 an ounce.

On the currency front, the U.S. finished last week firmer against the yen and the euro. Against the yen, the buck rose 0.41 percent to 106.97 yen, and it gained 1.02 percent against the euro to $1.1251. The dollar is currently trading at 106 yen and is valued at $1.1257 versus the euro.