Construction Spending, ISM, Pending Home Sales, Beige Book, Jobs Data
Across the board investors are worried. Equities are down, Treasuries are soft, crude oil is flat, the dollar is weaker and even gold is in sell-off.t
Two hours before the week’s opening bell, Dow futures are off by 14 points to 10,278 and S&P 500 futures are down 2 points to 1,088. WTI Crude oil is up 2 cents to $76.07 per barrel and Spot Gold is $7.54 lower at $1170.09.
“Uncertainty rules in financial markets to start the week,” said Sal Guatieri from BMO Capital Markets. “Equities are mixed, with emerging markets and Asian shares generally higher (led by a 3.2% gain in the Shanghai Composite index), but Europe down and S&P 500 futures slightly in the red.”
“Black Friday” sales were up 0.5% compared to last year, according to the National Retail Federation (is spending exhausted already though?). And most economic releases this week are accompanied by high expectations (including positive numbers for the manufacturing and service sectors, plus the smallest monthly job loss of the year.
But investors remain worried about the aftermath of Dubai’s debt crisis.
“As the Dubai debt crisis deepens, the UAE’s central bank announces a new liquidity facility for local and international financials, starting from Monday, when local markets return from the four-day Eid Al Adha holiday,” Erik Franco from The Overnight Express writes. “The central bank also says it ‘stands behind’ lenders exposed to the fallout from Dubai World.”
In the Washington Post, Federal Reserve chairman Ben Bernanke writes that congressional proposals on financial reform would “significantly reduce the capacity for the Federal Reserve to perform its core functions.” He calls them “very much out of step with the global consensus on the appropriate role of central banks.”
Only one piece of data will be released Monday but, as a regional report, it’s unlikely to sway the markets.
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