US pre-open: Futures point to more losses amid mixed signals on trade deal
By Iain Gilbert
Date: Wednesday 20 Nov 2019
(Sharecast News) - US stock futures were pointing to losses at the bell as uncertainty regarding the possibility of a trade deal between Washington and Beijing mounted.
As of 1230 GMT, Dow futures were down 0.37%, while S&P 500 and Nasdaq-100 futures had those two indices opening 0.34% and 0.49% weaker, respectively.
The Dow closed 102.20 points lower in the previous session as confused signals on the US-China trade front and some disappointing figures from the likes of Home Depot and Kohl's halted a record-breaking rally.
Also dampening market sentiment was the approval overnight, by a unanimous vote in the US Senate, of a bill aimed at protecting human rights in Hong Kong, amid worries that it might hamper trade negotiations with Beijing.
At the forefront of investors minds on Wednesday will be news that Donald Trump had threatened to impose higher tariffs on Chinese goods on Tuesday if Beijing did not strike a deal on trade.
"If we don't make a deal with China, I'll just raise the tariffs even higher," Trump said at a Cabinet meeting.
SpreadEx analyst Connor Campbell said: "In a week of increasingly mixed signals surrounding the US-China trade deal, Donald Trump flung some more dirt into the muddy waters on Tuesday evening.
"Combine it with the reports that Beijing is feeling increasingly pessimistic, and the blunt fact that nothing has been signed yet despite a couple of weeks ago both sides suggesting talks were ahead of schedule, and it's understandable that investors would have their concerns."
In other Trump-related news, there will be further public hearings related to the president's impeachment inquiry throughout the course of the day.
On the data front, mortgage applications in the United States fell 0.2% in the week ended 15 November, after a 9.6% rise in the previous week, according to data from the Mortgage Bankers Association.
Refinance applications declined 7.7% while applications to purchase a home increased by 6.7%.
Minutes from the Federal Open Markets Committee's meeting on 30 October will be released at 1900 GMT.
In the corporate space, retailer Lowe's and Target both posted earnings that came in ahead of analyst expectations, while L Brands will publish earnings after the close.
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