(Bloomberg) – Future US stock index futures fell prudently before major bank income, and there is no evidence of the longest partial closure of government in modern history. Following Chinese trade data, disappointed European stocks fell on Asian stocks.
Future contracts for the S&P 500 index fell by 0.9 percent from London after 9pm. Contracts for the Nasdaq 100 index fell by as much as 1.2 percent, but also Dow Jones Industrial Average contracts. Stoxx Europe 600 fell before the US parliament vote on Theresa May Brexit on Tuesday.
"The closure of the United States is now beginning to shift to an alarming length from an economic point of view," and most analysts expect weak profits from banks, said Nick Twidale, chief operating officer at Rakuten Securities in Sydney, Australia. "The fact that we move within a week sees pressure on US indices."
Despite the closure, US equities ended their third fair week, as Federal Reserve Chairman Jerome Powell pointed out a more moral position and hopes for a positive outcome of trade negotiations. S&P 500 has produced more than 10 percent of the bear market since Christmas Eve.
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"It is still too early to say that we have seen a low level," said Shane Oliver, investment strategy manager and chief economist at AMP Capital Investors Ltd., Sydney. "There are a number of issues that could upset the market," and this could lead to a low December recheck or get new falls in the coming months, he wrote in a note to customers.
Citigroup Inc. Monday's gains on major banks, the sector's litmus test, as analysts became more pessimistic, and this month, rating and price targets fell. Cost management, geopolitics and loan growth are key issues as investors appreciate the Fed's rise in rates and the impact of President Donald Trump's trade war on China.
There is also a partial economic impact of the closing of the government in the minds of investors, which became the longest in the modern era on Saturday, and there are no signs of decline. Approximately 800,000 federal workers missed their salary for the first time on Friday.
Trumps and Democrats remain in conflict with the President's demand for border wall funding. Although the President did not rule out the declaration of a state of emergency to put an end to the deadlock, his budget group is drawing up emergency plans for closure that last until the end of February.
To contact editors responsible for this story: Divya Balji at [email protected], Teo Chian Wei, Cecile Vannucci
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