Yahoo Finanza Futures Wobble, Boeing Curbs 737-Max Production, Tech Leads In Asia
The U.S. Futures Are Wobbling In Early Trading
The U.S. futures are wobbling in early trading as traders weigh in on the news from Boeing. Boeing says it will curb production of the 737-Max line next month due to its problems with the FAA. The news is not unexpected but a shock nonetheless due to the potential impact to U.S. economic activity. Boeing says it will not lay off or furlough the 737-Max employees but shift them to other work. Regardless, some economists have already stated the impact on GDP will be larger than a Government Shutdown. The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are all hovering around break-even in early trading.
Today’s action is buoyed by the housing data. Housing starts rose 3.2% to beat consensus by a fair margin. The news echoes a record-setting read on homebuilder sentiment issued on Monday and points to a solid building season this winter/spring. Along with the data, the figure for October was revised higher by 0.8%. On the Permits side, Building Permits rose 1.5% to hit a 12.5 year high.
EU Markets Are Dow At Midday
The EU indices are down at midday following a hard-line move made by the Boris Johnson government. The UK ruling party is planning to make it illegal for the country to extend the post-Brexit deadline past the end of 2020. With the Brexit expected to take place in late January, this leaves little time for the final Brexit negotiation to take place. Johnson’s aim is to secure a free-trade agreement with the EU beginning in 2021. The pound fell hard on the news, as did UK banks. The UK banks, up on Monday because of the Johnson victory, are down -3.0% to -5.0% at midday.
The DAX is leading today’s decline despite the news out of England. The DAX is down -0.76% while the UK FTSE 100 has shed only -0.12%. The CAC is splitting the difference with a loss of -0.35%. In stock news, household goods makers/retailers are down nearly -2.0% while energy is in the lead. Gas and oil stocks are up about 0.60% on strength in oil prices.
Asia Moves Higher, Tech Leads In China
Asia equity indices moved largely higher on Tuesday. The move was led by China and supported by rising optimism on trade. Tech leads the move with particular strength in Tencent. The Chinese-based provider of global internet services rose nearly 3.0% during the session. The Shanghai Composite and Hong Kong Hang Seng both gained a little more than 1.20% while the Kospi edged them out by advancing 1.27%. The Nikkei gained only 0.50%, the ASX fell -0.04%. In Australia, the RBA says it stands ready to cut rates if needed.
This article was originally posted on FX Empire
