Futures Point Lower, Erdogan Ousts Central Bank Chief, Deutsche Bank Announces 18,000 Job Cuts, And More

interest rate cut

Wall Street poised to open lower

U.S. stock index futures were slightly lower on Monday as investors feared that an interest rate cut by the Federal Reserve may be less likely now after the June employment report released by the Labor Department last week showed employers added a solid 224,000 jobs.

As of 3:51 a.m. ET, futures on the blue-chip Dow were down 35.5 points, or 0.13% to 26,849.5. Futures on the tech-heavy Nasdaq 100 declined 17.75 points, or 0.23% to 7,833.75 while those on the broader S&P 500 fell 3.62 points, or 0.12% to 2,986.88.

Asian stocks also plunged with Japan’s Nikkei 225 losing 0.98% to end the day at 21,534.35. China’s Shanghai composite dropped 2.58% to 2,933.36 while the Shenzhen composite declined 2.898% to finish its trading day at 1,554.80.

Turkish lira falls after Erdogan fires central bank governor

The Turkish lira slipped on Monday after the country’s central bank governor Murat Cetinkaya was fired by President Recep Tayyip Erdogan on Saturday over a dispute about interest rates.

The decision to sack the central banker and replace him with deputy governor Murat Uysal has sparked worries that the central bank will slash interest rates by more than expected.

Cetinkaya had been serving as the governor since 2016, and his four-year term was due to end year. As of 8:54 a.m. in Singapore, the lira was 2.1% lower at 5.7487 per dollar.

Oil rallies on upbeat U.S. jobs data

Oil extended gains early Monday, thanks in part to stronger-than-expected U.S. employment figures that showed employment jumped by 224,000 and unemployment rate was little changed at 3.7% last month.

CNBC quoted Stephen Innes, managing partner at Vanguard Markets in Bangkok as saying that oil prices were supported by “a better than expected (non-farm payrolls), but traders remain incredibly cautious about the dimmer global economic overhang.” 

As of 2:47 a.m. ET, U.S. West Texas Intermediate (WTI) climbed $0.06 to $57.57 per barrel while Brent crude futures were up $0.08 to $64.31.

Deutsche Bank pulls out of global equities sales and trading business; announces 74,000 job cuts by 2022

Deutsche Bank is exiting its global equities sales and trading business as part of a sweeping restructuring plan to improve profitability, the bank announced Sunday. As a result, the German banking giant will cut 74,000 jobs worldwide by 2022.

It plans to focus on serving European retail-banking customers and companies, including wealthy clients to try to save itself after years of losing money in its equities trading business.