Opening Losses Likely for Markets

LONDON -- The Dow Jones Industrial Average (INDEX: ^DJI  ) and the S&P 500 (INDEX: ^GSPC  ) are expected to make opening losses this morning, according to futures markets at 7 a.m. EDT.

At the close on Friday, the CNN Fear & Greed Index had risen to a near-record high of 94, signifying "extreme greed." Today, it looks like that may fall back a little as investors pause for breath and wait for new economic data due later this week, which will include housing starts, existing home sales, and the Markit Flash PMI for August. Today's data is limited to the Empire State manufacturing index at 8:30 a.m. EDT, which is expected to come in at zero, an improvement on last month's reading of -5.9.

Parcels giant FedEx is due to release quarterly figures on Tuesday, but today's earnings diary is pretty much empty, and New York trading volumes could be light today due to the Jewish New Year. Many market analysts are beginning to wonder if equity prices have gotten too far ahead of fundamentals and are speculating that a pullback might occur before any further gains, given that U.S. economic data last week was a little disappointing, with jobs and industrial output figures coming in below expectations.

European markets
European markets retreated from Friday's highs slightly this morning as concerns over the eurozone crisis came to the fore once more. Germany has called for a slower, more measured pace of progress toward banking union -- seen as an essential part of the solution to the eurozone crisis. Further concerns over China's economic growth also dampened optimism after Citigroup cut its growth forecast for Chinese GDP from 8% to 7.6% for this year.

At 7 a.m. EDT, the DAX was down by 0.2%, the CAC was down by 0.6%, the FTSE MIB was down by 1.1%, and the IBEX was down by 0.8%. In London, the FTSE 10 (INDEX: ^FTSE  ) was 0.3% lower, with engineer Rolls-Royce Holdings shedding 2.2% after its recent strong run. Leading the gainers were more traditional defensive shares such as Unilever and GlaxoSmithKline, both of which were up by around 1%.

Billionaire investor Warren Buffett does not own shares in Unilever or Rolls-Royce, but he did recently invest $1 billion in another well-known British blue chip brand, expanding his stake in the company to more than 5%. This famous British name has global expansion potential -- and you can discover the identity of the company and the price he paid in this special exclusive report. Best of all, the report is free -- so download it today while it's still available.

 Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is The Motley Fool's latest report. We urge you to read it today -- your wealth could be transformed. Click here now to request your free, no-obligation copy. The Motley Fool is helping Britain invest. Better.

Further investment opportunities:

Roland Head owns shares in Unilever and GlaxoSmithKline but has no shares in any of the other companies mentioned in this article. The Motley Fool owns shares of Citigroup. Motley Fool newsletter services have recommended buying shares of Unilever and FedEx. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2018595, ~/Articles/ArticleHandler.aspx, 12/22/2014 5:09:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement