9 Dec 2014
Wall Street to open lower on risk aversion
FXStreet (Mumbai) - The risk aversion in the financial markets witnessed across Asia and Europe is likely to push the US stocks lower today. The action in the US index futures is indicating a weak opening on the Wall Street.
At the time of writing, the DJIA futures are down 0.87%, while the S&P 500 futures are down 0.96%. Meanwhile, the NASDAQ futures and the Russell 2000 futures have weakened 1.00 and 0.94% respectively. Moreover, the VIX futures, which are up 5.81%, are clearly indicating risk aversion in the markets.
The fresh signs of weakness in the commodity prices with crude at 5-year lows have also contributed to the risk aversion in the financial markets. The weakness on Wall Street is likely to get the attention of the Federal Reserve policy makers. A report from the Wall Street Journal said Fed officials are seriously considering an important shift in tone at the meeting and may drop their pledge to keep interest rates near zero for a "considerable time."
On the data front, US Jolts job openings and wholesale trade in the month of October are due for release post opening bell. However, the markets are unlikely to react significantly to these data sets.
Elsewhere, the stocks in the Europe plummeted with major indices like the Dax and the Ftse trading down by 1.5% each. Earlier today, the Asian stocks took a beating as well.
At the time of writing, the DJIA futures are down 0.87%, while the S&P 500 futures are down 0.96%. Meanwhile, the NASDAQ futures and the Russell 2000 futures have weakened 1.00 and 0.94% respectively. Moreover, the VIX futures, which are up 5.81%, are clearly indicating risk aversion in the markets.
The fresh signs of weakness in the commodity prices with crude at 5-year lows have also contributed to the risk aversion in the financial markets. The weakness on Wall Street is likely to get the attention of the Federal Reserve policy makers. A report from the Wall Street Journal said Fed officials are seriously considering an important shift in tone at the meeting and may drop their pledge to keep interest rates near zero for a "considerable time."
On the data front, US Jolts job openings and wholesale trade in the month of October are due for release post opening bell. However, the markets are unlikely to react significantly to these data sets.
Elsewhere, the stocks in the Europe plummeted with major indices like the Dax and the Ftse trading down by 1.5% each. Earlier today, the Asian stocks took a beating as well.