Stocks Dip on Sovereign Debt Fears Abroad. Treasuries Get Flight to Quality
Equity futures are firmly lower this morning following a mixed session yesterday.
The Dow looks to open 31 points lower at 10,507 while futures on the S&P 500 are off 4.25 points to 1,132.75.
“The mood in global markets is towards risk aversion with no apparent trigger,” said Benjamin Reitzes from BMO.
MND's Adam Quinones says weakness in stocks and the flight to quality into Treasuries is a factor of overnight news from Fitch Ratings that warned against a downgrade of the credit ratings of the United Kingdom, France, and Spain.
Confirming that risk isn’t on the table this morning, WTI crude oil is down $1.25 to $80.62 per barrel, and Spot Gold is trading $6.32 lower at $1,117.23.
As one would expect, the US dollar is stronger against a broad array of currencies. The US$ index is at 80.78, a 36-basis point improvement.
Looking to the day ahead, no major economic data is scheduled for release, but three Treasury Auctions will be held and markets will be looking for headlines from a 9:30 speech by regional Fed president Charles Evans.
Lastly, the Wall Street Journal notes that today is “the one-year anniversary of the beginning of the stock market's rebound from its lows last year.” Markets don’t appear to be celebrating though, so leave the party hat at home.
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