Futures Pointing To Roughly Flat Open On Wall Street

The major U.S. index futures are currently pointing to a roughly flat open on Monday, with stocks likely to show a lack of direction after moving notably lower last week.

A lack of major U.S. economic data may keep some traders on the sidelines as they look ahead to the release of several key reports later in the week.

In the coming days, traders are likely to keep a close eye on reports on durable goods orders, consumer confidence, new home sales and pending home sales.

The Commerce Department is also due to release its report on personal income and spending in the month of May, which includes a reading on inflation said to be preferred by the Federal Reserve.

The consumer price inflation data could significantly impact opinions regarding whether the Fed will follow through on its forecast interest rate hikes.

Stocks moved mostly lower over the course of the session on Friday, giving back ground following the tech-led rebound during trading on Thursday. The major averages all moved to the downside, with the Nasdaq leading the pullback.

The major averages all finished the day firmly in negative territory. The Nasdaq slumped 138.09 points or 1.0 percent to 13,492.52, the S&P 500 slid 33.56 points or 0.8 percent to 4,348.44 and the Dow fell 219.28 points or 0.7 percent to 33,727.43.

For the holiday-shortened week, the Dow tumbled by 1.7 percent, while the Nasdaq and the S&P 500 both dove by 1.4 percent.

Overseas weakness carried over onto Wall Street amid ongoing concerns about the outlook for interest rates and the global economy.

Rate hikes in England and other countries along with the Federal Reserve’s forecast for additional rate increases have reignited worries tighter monetary policy will tip the global economy into recession.

Overall trading activity remained somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Networking stocks showed a significant move to the downside on the day, resulting in a 2.1 percent slump by the NYSE Arca Networking Index.

Significant weakness was also visible among semiconductor stocks, as reflected by the 1.8 percent loss posted by the Philadelphia Semiconductor Index.

Interest-sensitive utilities stocks also saw considerable weakness, dragging the Dow Jones Utility Average down by 1.6 percent.

Natural gas, computer hardware and commercial real estate stocks also moved notably lower over the course of the session.

Commodity, Currency Markets

Crude oil futures are climbing $0.25 to $69.41 a barrel after slipping $0.35 to $69.16 a barrel last Friday. Meanwhile, after rising $5.90 to $1,929.60 an ounce in the previous session, gold futures are advancing $10.10 to $1,939.70 an ounce.

On the currency front, the U.S. dollar is trading at 143.11 yen versus the 143.70 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0918 compared to last Friday’s $1.0894.

Asia

Asian stocks ended mostly lower on Monday, with interest-rate worries and geopolitical tensions in focus. Investors waited for more clarity after an abortive weekend mutiny by Russian mercenaries.

A softer dollar helped gold push higher, while oil prices rose on fears that ongoing political issues in Russia may impact supply.

Chinese and Hong Kong stocks fell as tourism and mobility data during the three-day Dragon Boat Festival pointed to a weak economic recovery.

China’s Shanghai Composite Index tumbled 1.5 percent to 3,150.62 as traders returned to their desks after a long holiday weekend.

Hong Kong’s Hang Seng Index settled 0.5 percent lower at 18,794.13 on disappointment over a lack of a big stimulus package to boost Chinese growth.

Japanese shares ended lower for a third consecutive session after the summary of opinions of the Bank of Japan’s June policy meeting showed that a board member hinted at the need to discuss the yield curve control policy.

The Nikkei 225 Index fluctuated before closing 0.3 percent lower at 32,698.81. The broader Topix Index edged down 0.2 percent to close at 2,260.17, with chip-related stocks such as Advantest and Tokyo Electron falling around 1 percent each.

JSR Corp. jumped 21.7 percent after receiving a multibillion-dollar buyout offer from state-backed Japan Investment Corp.

The safe-haven yen rose marginally after Japan’s top currency diplomat Masato Kanda said that the recent yen moves were “rapid” and authorities will respond appropriately to excessive currency moves.

Seoul stocks advanced, led by gains among automakers and tech stocks. The Kospi rose 0.5 percent to 2,582.20, recovering from an early slide. Samsung Electronics gained 1.1 percent and Kia Motor Corp. rallied 2.5 percent.

Australian stocks ended in the red, with banks and commodity stocks underperforming ahead of domestic inflation data due later in the week. Upcoming jobs and retail sales data also remained on investors’ radar.

The benchmark S&P/ASX 200 Index dropped 0.3 percent to 7,078.70, extending losses to a fourth consecutive session. The broader All Ordinaries Index finished 0.3 percent lower at 7,264.10.

Gold miners Newcrest and Northern Star Resources climbed 1-2 percent as bullion prices benefited from a weaker dollar.

Grocery wholesaler and distributor Metcash soared 4.7 percent after delivering strong annual results.

Europe

European stocks are turning in a mixed performance on Monday as a short-lived mutiny in Russia by the Wagner paramilitary group revived concerns over nuclear arsenal security. German business sentiment pointed to the likelihood of a longer recession, further weighing on sentiment.

The headline German IFO Business Climate Index fell to 88.5 in June from 91.5 in May (revised from 91.7) reflecting weakness in the manufacturing sector, according to data from the Ifo Institute. Analysts expected a score of 90.7.

While the French CAC 40 Index is up by 0.3 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both down by 0.1 percent.

Banks fell broadly, with Commerzbank, Credit Agricole and Lloyds Banking moving notably lower on concerns fueled by the latest political turmoil in Russia.

Associated British Foods has also moved to the downside despite lifting its profit outlook for the 2022/23 year.

Stock market operator Euronext has dipped in Paris after it has entered into a definitive agreement for the sale of its 11.1 percent stake in LCH SA to LCH Group Holdings Limited for an amount of €111 million.

SCORhas also declined as it announced the appointment of Fabrice Bregier as the Chairman of its Board of Directors.

Meanwhile, Aston Martin has jumped after the British luxury carmaker said it would enter into an agreement with Lucid Group to manufacture “high performance” electric vehicles.

Swedish landlord SBB has also soared after saying it had entered discussions to sell the company’s remaining 51 percent of its education unit.

U.S. Economic Reports

The Treasury Department is scheduled to announce the results of this month’s auction of $42 billion worth of two-year notes at 1 pm ET.