US pre-open: Stocks seen muted as Sino-US relations back in focus
By Michele Maatouk
Date: Thursday 14 Mar 2019
(Sharecast News) - US stocks looked set for a fairly muted open on Thursday as worries about Sino-US relations resurfaced, while disappointing Chinese data was also expected to weigh on the mood.
At 1220 GMT, Dow Jones Industrial Average futures were down 0.1%, S&P 500 futures were flat and Nasdaq futures were 0.1% higher.
Relations between the US and China were back in focus following a report that a meeting between US President Donald Trump and Chinese President Xi Jinping to sign an agreement to end their trade war will not take place this month and is likely to be delayed until April at the earliest.
Bloomberg cited people familiar with the mater as saying that despite claims of progress in talks by both sides, a hoped-for summit at Trump's Mar-a-Lago resort will now take place at the end of April if it happens at all.
One source said China is pressing for a formal state visit rather than a lower-key appearance just to sign a trade deal, while another said Xi Jinping's staff have scrapped planning for a potential flight to the US following a trip to Europe later this month.
David Cheetham, chief market analyst at XTB said: "There's been a quick swoon in European stock markets and US futures in recent trade after news broke that a meeting between US President Donald Trump and President Xi Jinping has been pushed back, dashing any hopes of an end to the trade tensions this month.
"The news isn't a major negative shock in itself but with stock markets on both sides of the Atlantic close to their year-to-date highs it comes at a potentially key time and will test the mettle of bulls who have enjoyed control of the tape in recent months."
Investors will also likely be digesting the latest data out of China. Growth in the country's industrial output slowed to a 17-year low in the first two months of the year. Industrial production growth slowed to 5.3% year-on-year from 6.2% in December, missing expectations of 5.6%.
However, fixed asset investment growth picked up to 6.1% year-on-year in February from 5.9% in December, in line with consensus. Retail sales data was also in line with growth of 8.2% in February from 9% in December.
In corporate news, General Electric was higher in pre-market trade even after the company's 2019 guidance fell short of analysts' expectations.
Tailored Brands was set to drop at the open after the Men's Warehouse owner's fourth-quarter numbers disappointed.
Facebook shares could be active following a report in the New York Times that a grand jury under the supervision of prosecutors from the Eastern District of New York has subpoenaed records from at least two hardware manufacturers who had data-sharing partnerships with the company.
Across the pond in the UK, MPs were due to vote later on whether to extend Article 50 and delay the Brexit process.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN