Futures Set To Slip At Open After Disappointing German Manufacturing Data

NEW YORK, NY - MARCH 28: Traders work on the floor of the New York Stock Exchange on March 28, 2014 in New York City. The Dow Jones industrial avererage was up over 100 points in afternoon trading. (Photo by Spencer Platt/Getty Images)
  1. U.S. futures set to slip at open

U.S. stock index futures pointed to a lower open on Friday after weak German manufacturing data sparked worries about global economic growth. The disappointing German purchasing managers survey showed manufacturing contracted to its lowest level since 2012.

At around 6:58 a.m. EDT, futures on the S&P 500 were down 12.38 points, or 0.43% to 2,850.12. Meanwhile, futures on the Nasdaq dropped 30.50 points, 0.40% to 7,504 as those of the blue-chip Dow Jones Industrial Average fell 116 points, or 0.45% to 25,895.

Gold rose 0.3% to $1,311.40 per ounce, while crude oil dropped 0.7% to $59.57 per barrel. 10-year yield fell almost 4 basis points to 2.499% as 2-year treasury yield was down 3 bps to 2.383%.

  1. EU leaders agree to delay Brexit

EU leaders agreed to extend the deadline for Brexit until 12 April at the earliest after British Prime Minister Theresa May accepted the bloc’s proposals. The Prime Minister had been forced into asking for more time after British lawmakers handed her two crushing defeats to her exit blueprint.

If she is able to persuade the lawmakers to accept her terms for leaving the bloc, Brexit will happen on 22 May. But if they reject the proposal, the UK will leave the EU on April 12. However, the country could stay in the bloc longer if it agrees have to take part in the European Parliament elections scheduled for May 23-26.

May has reiterated her opposition to the idea of participating in the elections, three years after the UK voted to leave the EU. The sterling was down 0.1% to $1.3099 early Friday.

  1. Boeing 737 MAX 8 jet faces first order cancellation

Indonesian airline Garuda on Friday announced that it is calling off its multi-billion-dollar order for 49 Boeing 737 Max 8 passenger jets after the aircraft was involved in two fatal crashes in a span of five months.

The airline said passengers have lost confidence in the aircraft following the ill-fated journeys of Ethiopian Airlines Flight 302 and Lion Air Flight 610 that killed a combined total of 346 people.

Garuda becomes the first airline to make a formal cancellation of an order for the 737 Max 8. “We have sent a letter to Boeing requesting that the order be cancelled,” said the airline’s spokesman Ikhsan Rosan. “The reason is that Garuda passengers in Indonesia have lost trust and no longer have the confidence”

Boeing stock, which ended Thursday’s regular session at $372.70, was down slightly in premarket trade Friday.

  1. Uber, Pinterest pick NYSE for their stock listings

Uber and Pinterest have picked the New York Stock Exchange (NYSE) over the Nasdaq as the trading floor for their initial public offerings, CNBC reported, citing sources familiar with the matter.

The two exchanges are always battling over winning big companies. They often offer discounts or lower listing fees in order to woo one company or another. Uber and Pinterest are expected to list their shares on the NYSE April.