US pre-open: Stocks seen muted after China data
By Michele Maatouk
Date: Wednesday 07 Jun 2023
(Sharecast News) - US stock futures pointed to a muted open on Wall Street on Wednesday, as investors mulled disappointing Chinese trade figures.
At 1215 BST, Dow Jones Industrial Average futures were down 0.1%, while S&P 500 and Nasdaq futures were flat.
Data out earlier showed that China's exports fell 7.5% in May to $283.5bn on an annual basis, a sharp reversal from the increase of 8.5% in April.
The May figure was below the expectations of a fall of 0.1%. Imports fell by 4.5% to $217.7bn, up from a fall of 7.9% in April, and above expectations of a 6.8% fall.
China's trade surplus was $65.8bn in May compared to $90.2bn in the previous month.
Oanda market analyst Craig Erlam said: "Weaker global trade is not a new story but it is surprising how quickly China's reopening boost has faded, with backlogs of work supporting export numbers until now even as other countries have continued to see demand for their goods wane.
"With China's reopening boom flagging so quickly, pressure is set to intensify on the leadership to announce new stimulus measures in a bid to revitalise the economy again and achieve its 5% growth target. That may initially come in the form of rate cuts, perhaps targeted to those sectors under the most pressure with authorities so far reluctant to engage in broad-based easing."
On the corporate front, Netflix gained in pre-market trade after a price target upgrade from Wells Fargo.
Coinbase was also in the black, having tumbled on Tuesday after the Securities and Exchange Commission said it was suing the crypto exchange.
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