US Equity Futures Under Pressure Ahead of Busy Week; Europe Weaker

Ahead of a handful of unknowns this week, including US China trade talks, the FOMC decision, US jobs report, and corporate earnings, stocks were under pressure early Monday, Jones Trading said.

The DAX was down 20 points in light volumes, as a rebound in telecom offsets losses elsewhere, while the FTSE was down 40 points as big oil retreated into earnings, but consumer names were acting well behind Ocado-M&S chatter and miners followed ore higher.

It was mixed session in overnight Asia. The Nikkei lost 60 points led by Utilities and Banks, while Nintendo got hit for 4%, the Hang Seng was up small despite late day selling in tech, Shanghai lost 20 points, the KOSPI was flat and the Aussie was closed for holiday.

There was decent selling in Bunds and Treasuries, pushing the US10Y yield back above 2.76% ahead of heavy supply this week. The Dollar was up small, as sterling retreated after UK Consumer Confidence fell to 18-month lows into the Brexit “Plan B” vote tomorrow, while the euro shrugged off weaker German IFO confidence. Dollar-yen recovered early losses, and China’s Renminbi touched 6-month peaks.

Ore surged 6% to 16-month highs on the Vale dam collapse as Aluminum slumped after Rusal sanctions were lifted, while gold was showing a small bid, shrugging off the stronger dollar. A surge in rigs and Chinese industrial slowdown has WTI off almost 2%, while natural gas was down heavy.

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