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US Futures Caution as Recession Fears Hold Sway By Investing.com



© Reuters.

Investing.com – Wall Street is set to be lower open on Monday as fears of slowing growth and a possible US recession are leading investors to avoid venture capital.

But positive economic data out of Germany and relief from political developments helped calm the nerves that triggered the S & P 500's worst day since January at the end of last week.

Blue chip dropped 12 points or 0.1% to 25.558.5 points at 6:46 ET (11:46 GMT), they lost 2 points or 0.1

% to 2,808.88 points while the tech heavy traded 24 points or 0.3% to 7.345.25 points.

Investors were still jittery after the US yield curve inverted on Friday for the first time since 2007. The yield on the 10-year Treasury declined below the 3-month government bond yield, an event some analysts believe to overshadow a recession, but is not always the case. Under normal circumstances, a long-term bond should have a higher yield than a short-term bond, as there is a higher risk for a longer period.

However, Rob Carnell, economist at ING, assured him of reaching a conclusion too quickly. "We suspect that a recession conclusion is drawn from such data is not justified until the 3M-10Y yield curve is reversed by a significant amount," Carnell said. "Just inverted, as today's markets indicate, doesn't do it for me."

The Chicago Federal Reserve Bank president also confided in the US economic outlook.

"Part of this is structural, having to do with lower trend growth, lower real rates," he said Monday at the Credit Suisse Asian Investment Conference in Hong Kong. "I believe in this environment, it is probably more natural that the yield curves are somewhat flatter than they have been historical."

Former Fed Chairman Janet Yellen also said on Monday that the yield curve may signal the need to cut interest rates at some point, but that.

In one day without major US economic reports, traders helped to pull a sigh of relief as business confidence was more than expected and the first improvement after six months of decline.

The yield curve also returned to its normal form with the price of 2.45% at kl. 06.47 ET (11:47 GMT), while the benchmark moved higher to 2.47%.

Also, relief, Special Counsel found no sign of the interplay between President Donald Trump's campaign team and Russia, and did not provide enough evidence to justify charging the president with barriers to justice, US lawyer William Barr said Sunday.

The end of the study removes what some see as a distraction from urgent economic issues such as infrastructure spending or trade relations with China.

In corporate news, Apple (NASDAQ 🙂 is on a secret annual effort to build a television and movie offer, while Boeing (NYSE 🙂 will be mapping more than 200 global airlines, technical managers and regulators this week at its 737 MAX aircraft.

On the earnings front, Dropcar (NASDAQ :), Eastman Kodak (NYSE 🙂 or Winnebago Industries NYSE 🙂 were among companies scheduled to report on Monday.

Outside bonds and shares that measure the greenback against six rival currencies, 0.1% progressed to 96.12 at 9.00 pm. 6:48 ET (11:48 GMT)).

In commodities, 0.3% rose to $ 1,322.85 a troy ounce, while trading down 0.1% to $ 58.98 per tonne. Barrel.

– Reuters contributed to this report.


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