US open: Stocks slide ahead of trade talks
By Iain Gilbert
Date: Monday 07 Oct 2019
(Sharecast News) - US stocks opened lower on Monday as market participants looked to a meeting between US and Chinese trade officials later in the week with a degree of scepticism.
As of 1545 BST, the Dow Jones Industrial Average was down 0.24% at 26,508.87, while the S&P 500 was 0.25% lower at 2,944.75 and the Nasdaq Composite started out the session 0.14% weaker at 7,970.98.
The Dow opened 64.85 points lower on Monday as stocks continued their recent downward trajectory after Bloomberg reported that Chinese officials were hesitant to pursue a broad trade deal with the US when negotiations recommence on Thursday. Deputy-level talks kicked off on Monday.
Chinese Vice Premier Liu He, who will lead negotiations for China, was alleged to have said his offer to the US would not include commitments on reforming the nation's industrial policy or government subsidies, both of which were among the Trump administration's main demands in the trade talks.
London Capital Group analyst Jasper Lawler said: "The resilient economy should have given the US a strong negotiating position for trade talks this week but politics has intervened.
"It seems more than a coincidence that China has taken a tough stance in trade talks just as impeachment proceedings begin against President Trump. A second whistleblower in the Trump-Ukraine scandal will embolden China even more."
On the data front, September's monthly federal government budget statement was scheduled for release in the afternoon, while consumer credit figures for August were to be posted at 2000 BST.
In corporate news, Visa shares were down after launching a partnership with Australian fintech firm Payment Logic, while Nvidia shares were up after rumours began to circulate that its Ampere GPU will launch in the first half of 2020.
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