The first June trade does not seem to be promising for the US markets, with futures indicating a lower opening today. Following China's aggressive rhetoric in response to US intentions, trade relations worsened significantly over the weekend.
For the time being DOW indicates a lower opening by about 60 points. The S & P500 and NASDAQ futures also point to a weaker start. DOW is about to record the sixth consecutive week of consecutive losses since 2011.
Due to the trade strain, Boeing shares are down 1.2%. Alphabet in the pre-market session was down 3.4% after the Justice Department opened an investigation against an antitrust company.
China's Commerce Minister, Wang Shouwen, said on Sunday that the US would not be able to incite China to a deal. He also declined to comment on whether the two sides will meet at the G-20 meeting to narrow the gap later this month.
Commercial tensions have only grown, weighing on Wall Street, following Trump's comments, that it may impose additional 5% tariffs on Mexican goods.
Shortly after the start of the US session, we expect PMI production data to be published at 17:00 GMT. Expectations are a slight increase in activity in May.
The sentiment remains negative, as safe - heaven assets remain attractive as the Swiss franc, the Japanese yen and the gold. Petrol began its recovery today after comments from Saudi Arabia that they believe the agreement between OPEC + to reduce the yield from December may remain in force after the June cartel meeting.
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