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Equity futures reported a losing session on Tuesday, as appetite for riskier assets, such as equities, was hit as a two-day rally for the Chinese stock market began to dissipate . Investors were also threatened by a deluge of revenue generated by large companies such as Caterpillar Inc.
How do the main indices trade?
Dow Jones Industrial Average – Futures Contracts
YMZ8, -0.91%
fell 261 points, or 1%, to 25,032, while the futures contracts of the S & P 500
ESZ8, -1.02%
fell 31.50 points, or 1.1%, to 2,725. Futures Nasdaq-100
NQZ8, -1.21%
slipped 98.5 points, or 1.4%, to 7,057.25.
DJIA, -0.50%
Monday, Dow Industrials
DJIA, -0.50%
decreased by 126.93 points, or 0.5%, to finish at 25 317.41, while the S & P 500
SPX, -0.43%
lost 0.4% to close at 2,755.88. The Nasdaq composite index
COMP + 0.26%
had a 0.3% gain to finish at 7,468.63.
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What is the engine of the markets?
More than 150 companies are about to announce their financial results this week. Caterpillar Inc.
CAT, -1.99%
on the record for Tuesday, with McDonald's Corp.
MCD -0.51%
and 3M Co.
MMM, + 0.76%
Investors hope the stock markets will find new momentum to go higher with these results.
But worried investors watched the risks pile up, with China in the limelight as the Shanghai Composite Index.
SHCOMP, -2.26%
made part of the two-day recovery, down 1.3%. For example, government officials have spent the past few days trying to support the market by verbally encouraging investors.
Trade tensions between the United States and China are also a persistent factor for investors. On Monday, it was reported that two US Navy warships crossed the Taiwan Strait on Monday, but were closely monitored by Chinese warships.
In addition, the Italian budget plan should ask the European Commission to revise its budget on Tuesday, while trade continues between the anti-establishment government of the country and Brussels.
In addition to profits, investors continue to worry about the potential impact of rising interest rates on the economy as the US Federal Reserve has indicated its intention to tighten monetary policy by the end of the year.
What are other markets doing?
The losses were not felt solely in China, the Nikkei 225 index
NIK -2.67%
2.3% drop and Hong Kong's Hang Seng Index
HSI, -3.04%
fell by 2%. Future European equities signaled a mixed start.
By moving away from riskier assets such as stocks, investors have sought refuge in the Japanese yen.
USDJPY, -0.46%
, which was up 0.2% against the dollar to 112.57 yen. Gold price
GCZ8, + 0.87%
also progressed, while oil futures
CLX8, + 0.19%
slipped.
And the yield of the 10-year Treasury bill
TMUBMUSD10Y, -1.36%
decreased by 0.7% to 3.171%. Returns are inversely proportional to price.
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