Futures head south after China data points to decelerating retail sales
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.
On Tuesday, financial markets took a breather after American leader labeled the trade conflict war with China as "a bit squabble" and told he’d talk to Chinese President Xi Jinping at a G20 Summit in June.
The optimistic remarks followed Monday’s market rout when the Dow and the S&P 500 reported one of Wall Street's worst dives in 2019 because the two sides slapped tit-for-tat levies on each others imports.
However, China seems to lack enough options to respond to America without hurting its own interests. China’s data revealed shockingly weaker surge in retail sales as well as industrial output for April, increasing pressure on China to roll out more stimulus.
Worries that the trade dispute could be protracted and might affect the global economy has kept traders on edge for the last couple of days. The benchmark S&P index dived by 4% from its all-time maximum hit two weeks ago.
In addition to this, ET, Dow e-minis headed south by 0.29%. Additionally, S&P 500 e-minis decreased by 0.27%, while Nasdaq 100 e-minis tumbled by 0.25%.
In addition to this, Perrigo Company PLC headed south by about 1.3% in premarket trading due to the fact Jefferies reduced its price objective on the generic drugmaker following the company's recent move to have its higher margin generic pet care business divested.
Moreover, Henry Schein Inc went down by 1.2% due to the fact SVB Leerink downgraded the dental products distributor from "outperform" to "market perform", referring to competitive threat from online suppliers, including eBay and Amazon.
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Market updates on June 18
Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.