US stock index futures dipped, with the week ahead busy for economic indicators and Fed commentary
Wall Street stocks closed mixed in shortened trading session on Friday as markets reopened following the Thanksgiving holiday. The S&P 500 added just 0.1%, the Dow Jones gained 0.3% and the Nasdaq Composite gave up 0.1%. On the weekly basis, the indexes notched gains despite losses in technology and communication services stocks. For the week, the S&P 500 rose 1%, the Dow gained 1.3%, and the Nasdaq was up 0.9%. Stock index futures dipped on Monday, with the week ahead busy for economic indicators and Fed commentary, including readings for consumer confidence and inflation.
Asian equities fell on Monday amid fresh weak data out of China. In particular, industrial profits rose at a much slower pace in October than the prior month as deflationary pressures persisted. Profits increased 2.7% from a year ago, with the pace easing significantly from September’s 11.9% gain. Furthermore, downside risks to commodity prices weigh on the profit outlook. Against this backdrop, the Shanghai Composite index gave up 0.3%, while Hong Kong’s Hang Seng index fell 0.08%. Japan’s Nikkei 225 slipped 0.62%, and Australia’s S&P/ASX 200 closed 0.76%.
In Europe, stock futures suggest regional markets are heading for a negative start to the new week as risk demand keeps abating. Still, the moves could be muted during the upcoming session as there are no major earnings or data releases today. In the coming days, however, month-end flows could trigger some volatility in the markets after recent gains, where the region’s Stoxx 600 index reached its highest level in two months.
Meanwhile, the US dollar is back under pressure after a two-week slide. The USD index failed to regain the 104.00 handle last week and thus resumed the decline amid growing expectations for an earlier rate cut by the Federal Reserve. Since then, the greenback fell back below the 103.50 zone, targeting the 103.00 mark that now represents the immediate significant support. On the upside, a decisive recovery above 103.80 is needed for a brighter near-term technical outlook.
