Wall Street set to open higher
U.S. futures pointed to a higher open on Tuesday, buoyed by renewed optimism on U.S.-China trade talks. Trump trade adviser Peter Navarro dismissed reports that the White House was considering blocking Chinese firms from listing shares on U.S. stock exchanges.
“That story, which appeared in Bloomberg: I’ve read it far more carefully than it was written. Over half of it was highly inaccurate or simply flat-out false,” Navarro told CNBC on Monday.
Multiple media outlets reported last week that the White House was considering delisting the Chinese companies. U.S. and Chinese trade officials are expected to resume negotiations next week.
At 5:55 a.m. ET Tuesday, the blue-chip Dow futures gaining 70 points, or about 0.26% to 26,971. S&P 500 futures advanced 7.12 points, or around 0.24% to 2,985.62, while the tech-heavy Nasdaq 100 futures indicated a gain of 25.25 points, or roughly 0.32% to 7,795.75.
Chinese markets closed as country marks 70 years of communist rule
Markets in China and Hong Kong were closed Tuesday as the country celebrated the 70th anniversary of Communist Party rule with a massive parade of military hardware and troops in Beijing.
President Xi Jinping opened the celebrations at the Tiananmen Square gate and proclaimed that “no force can ever shake the status of China, or stop the Chinese people and nation from marching forward.”
Meanwhile, pro-democracy protests in China-controlled Hong Kong took a dangerous turn after a man was shot with live round by police while demonstrating in the Tsuen Wan neighborhood. A video circulating online appears to show the protester being shot at close range by police during the demonstrations.
Eurozone manufacturing PMI falls to a seven-year low
The manufacturing Purchasing Managers’ Index (PMI) for the eurozone dropped to 45.6 in September, down from 47 in August and its lowest level since October 2012, according to data firm IHS Markit.
Spain, Italy, Germany, Ireland, and Austria all posted PMI readings below 50.0 mark, indicating contraction.
“The health of the eurozone manufacturing sector went from bad to worse in September, with the PMI survey indicating the steepest downturn for nearly seven years and sending increasingly grim signals for the fourth quarter,” IHS Markit chief business economist Chris Williamson said.
“There’s likely worse to come, with forward-looking indicators (such as the orders to-inventory ratio) deteriorating further during the month,” he added.
