- Summary:
- S&p 500 futures fell in early trading as oil and gold prices rise sharply as traders dump risky assets and buy safe havens amid increasing tensions.
S&P 500 futures fell in early trading as oil and gold prices rose sharply as traders dump risky assets and buy safe havens amid increasing tensions in the Middle East. Traders now await the retaliation from Iran after an Iranian general killed in a U.S. airstrike in Baghdad last Friday.
The Dow Jones Industrial futures are 0.60% lower at 28,429. The Nasdaq futures contracts are 0.68% lower at 8,750. S&p 500 futures are 0.61% lower at 3,218. The good news is coming from the China-US trade deal as Chinese Vice Premier will visit Washington on January 15th to sign the Phase One deal.
Services PMI Will Set the Tone in s&p 500
Investors focus will shift later today on the Services PMI data from USA due at 14:45GMT. Analysts do not expect any change in the Services PMI from the previous reading of 52.2. The Composite PMI also expected at 52.20.
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DAX, CAC and FTSE in the Red
European stocks trade with steep losses as investors dump risky assets across the globe. The DAX Index gives up 1.45% at 13,028, despite the German Services PMI came in at 52.9, beating expectations of 52 in December.
The CAC 40 is 0.95% lower at 5,986 while the FTSE MIB is 1.33% lower at 23,390. In London, the FTSE 100 gives up 0.90% amid the Iran-USA tensions and despite upbeat Services PMI figure.
Asian equities were the first markets that felt the selling pressures. Nikkei 225 ended 1.91% lower at 23,204. The Hang Seng finished 0.79% lower at 28,226, the Shangai Composite index finished 0.01% lower at 3,083, while in Singapore the FTSE ended 0.62% lower at 3,218.
Cryptocurrencies Rally Continues
In digital currencies, BTCUSD is 2.57% higher at $7,542 and bulls are looking for a credible settlement above the $7,500 mark. The Ripple price outperforms adding 7.65% at 0.2128. Ethereum as of writing adds 5.42% at $142.26 while BTC to GBP nearing a bullish tipping point on Iran/US Tensions.
Gold At Six Year Highs
Gold prices continues higher for the ninth consecutive trading session hitting the highest level since 2013 as investors looking for safe-haven assets as Iran Announces $80m Bounty for Trump’s Head. Crude oil prices trade at 9-Month highs on the US-Iran Tensions and a drop in US oil inventories last Friday.