US stocks are poised to retreat after the opening bell, as futures on the three benchmark indexes are declining slightly during the European morning on Monday. Last week, the three indices ended at record highs on the back of stimulus talks.
Futures on the S&P 500 and Dow Jones have lost over 0.25% while Nasdaq futures are down 0.08%.
Equities managed to end Friday on a bullish note despite the disappointing nonfarm payrolls data, according to which the US saw 245,000 more jobs in November, while analysts expected the creation of 440,000 new jobs. The stock market rose on the premise that the downbeat labor market data would force Congress to reach consensus on fresh stimulus after months of debate.
Senate Minority Leader Chuck Schumer said that the jobs data highlighted the need for urgent emergency relief, while President-elect Joe Biden pointed to a “dark winter.”
Last week, a group made of members from both Republican and Democrat parties revealed a $908 billion stimulus package, though there is still no clear decision about if, when and how it will be rolled out.
In individual corporate news, Airbnb intends to increase the target price range for its IPO to between $56 and $60 per share, people familiar with the matter told the media. The home rental company previously set a price range between $44 and $50 per share for its $3.1 billion IPO set for December 10 on Nasdaq. The company will be valued at over $40 billion.
In Asia, stocks are mixed on Monday, as bears are pointing to the disappointing US jobs data and deteriorating Sino-US tensions.
At the time of writing, China’s Shanghai Composite is down 0.65%, and the Shenzhen Component has declined by 0.07%. Tensions between the US and China are making the headlines again as the White House reportedly intends to impose sanctions on a dozen Chinese officials. It has to do with their alleged roles in the disqualification of four Hong Kong opposition leaders last month.
Meanwhile, China reported the biggest increase in exports since February 2018, thanks to a recovery in demand. Official data showed that exports rose 21.1% y/y in November, beating forecasts of a 12% growth and after October’s 11.4% growth. The trade balance increased to $75.42 billion versus the expected $53.50 billion. Imports increased by 4.5% y/y last month, falling short of expectations of most economists, who anticipated 6.1% growth. China’s trade data demonstrates once again that the world’s second-biggest economy is recovering from the coronavirus crisis.
Hong Kong’s Hang Seng Index has tumbled by 1.41%. Japan’s Nikkei 225 closed 0.76% lower.
South Korea’s KOSPI is up 0.51% after opening in the red.
Yesterday, Kia Motors Corp said it was recalling 295,000 vehicles in the US, citing engine fire risks.
In Australia, the ASX 200 closed 0.62% higher.
In the commodity market, oil prices are declining on Monday as the number of COVID cases continues to surge globally and in the US, which is the world’s biggest oil consumer. WTI is down over 0.40%, and Brent has declined by over 0.30%. On larger timeframes, crude prices are trading close to the highest levels since the beginning of March, after closing the fifth straight bullish week.
Gold is gaining on US stimulus hopes. Gold futures are up 0.20% to $1,844.
In FX, the US dollar tries to recover from the year-to-date lows after extending losses on disappointing nonfarm payrolls data. The greenback is now up 0.12% to 90.802. Still, EUR/USD is up 0.05% to 1.2127. Both the European Central Bank and the US Federal Reserve will present their policy decisions later in the week.
The pound is down over 0.20% against both majors as there are no clear signals of a potential trade deal between the UK and the EU even after “the decisive week.”
