- U.S. inflation data in focus
Investors will keep a keen eye on U.S. inflation data set to be released at 8:30 a.m. ET. Analysts expect inflation to have risen by at an annualized rate of 1.4% in February, compared to 1.6% in January and far below the Federal Reserve’s target of 2% target. That is off the back of an expected 0.2% monthly rise.
Economists forecast that February core inflation – the rate that matters most for Fed officials – remained unchanged at 2.2%. Core inflation provides a better reflection of domestically generated price pressures by removing volatile food and energy items from the consumer goods basket.
- Boeing under pressure as more aviation regulators ground 737 Max 8 planes
Boeing shares remain under pressure after one of the its 737 Max 8 planes operated by Ethiopian Airlines crashed on Sunday, claiming the lives of all 157 people on board. The crash of Ethiopian Airlines Flight 302 is the second crash in five months involving Being’s most important plane – the 737 Max 8.
Regulators and airlines in China, Australia, Singapore, Ethiopia and other countries, meanwhile, said they were grounding the 737 Max 8 in response to the crash. Aviation regulators in Singapore temporarily suspended operation of all variants of the aircraft into and out of the country.
China, a hugely important market for the U.S. aerospace giant, also ordered its airlines to suspend operations of the 737 Max. Australia has also barred 737 MAX jets from its airspace. Shares of Boeing were trading 3% lower, at $388.00 in pre-market trade as of 8:13 a.m. ET. The stock ended Monday’s regular session with a loss of 5.33%.
- Stock futures point to mixed open
Major U.S. index futures are pointing to a mixed opening on Tuesday after breaking 5-day losing streak on Monday. The Nasdaq-100 and S&P 500 futures were higher on Tuesday, while those of the Dow were still under pressure as shares of Boeing continued to slump following the deadly plane crash of one of the company’s 737 Max jets over the weekend.
- Pound sinks ahead of crucial Brexit vote
The sterling pound slid Tuesday after UK’s Attorney General Geoffrey Cox said that the legal risk of the country being stuck in the trade arrangements of the European Union after Brexit fundamentally remain unchanged.
In reaction to Cox’s opinion, the British currency dropped to $1.3046 from $1.3143. Lawmakers in the country are set to vote on the “new and improved” Brexit deal that Prime Minister Theresa May recently reached with EU leaders. The vote will take place on Tuesday evening.