On Wednesday, American stock index futures headed south because dismal data out of China affected market sentiment, while traders waited for more developments related to the US-China trade conflict…
American equities head south on Turkey currency crisis
On Monday, American equities went down because a downtime in Turkish lira pressured equities of big American lenders and provoked a widespread selloff in global stocks.
Concerns regarding Turkish leader Tayyip Erdogan's influence over the economy as well as worsening relationships with America have sent the Turkish currency down. As a result, it lost over 40% versus the evergreen buck in 2018.
The latest crash actually convinced market participants to dump stocks and shift to safer assets, including government bonds and the evergreen buck.
The dismal mood in the financial markets turned out to be a continuation from Friday, exactly when American bank equities took a beating due to the fact market participants worried over the Turkish crisis.
Wells Fargo headed south by 0.9% in premarket trade. Meanwhile, Citigroup went down by 0.7%, while Bank of America inched down by 0.7%.
In addition to this, Dow e-minis were caught slipping about 0.3%. As for S&P 500 e-minis, these equities declined by about 0.27%, while Nasdaq 100 e-minis headed south by approximately 0.26%.
If the losses persist, the S&P 500 is braced for reporting its fourth straight session of dips. It’s going to be the first such a dismal outcome since mid-March. However, the index has drifted about 1.34% away from a record maximum recorded in January.
Furthermore, Nielsen Holdings managed to tack on by 10.4% right after the Wall Street Journal posted that activist trader Elliott Management grasped a large stake in the TV-ratings firm.
As for Mylan, it managed to grasp up to 0.9% right after RBC had the stock upgraded to the status of "outperform".
Besides this, Goodyear Tire & Rubber slumped by 2.8% in low volumes due to the fact that brokerageMorgan Stanley dared to have the stock downgraded to the status of "equal-weight".
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The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.