Geopolitical tension weigh on market sentiment - 5.9.2017

US stocks set to open lower

US stock index futures fell on Monday as geopolitical tensions flared after North Korea conducted its largest nuclear test yet. US markets were closed for Labor Day holiday and will be reopening today. The dollar weakened: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.2% to 92.598. S&P 500 futures closed 0.3% lower settling at 2467.75. The Dow Jones industrial average futures lost 0.3% to 21925.00. The Nasdaq composite index futures slipped 0.2% closing at 5975.00.

European stocks fall

European stock indices retreated on Monday after report North Korea was preparing for a another possible launch of intercontinental ballistic missile following a nuclear bomb test Sunday. The euro gained against the dollar while British Pound slipped. The Stoxx Europe 600 index fell 0.5%. The DAX 30 lost 0.3% to 12102.21. France’s CAC 40 fell 0.4%. UK’s FTSE 100 lost 0.4% to 7411.47. Indices open 0.1%-0.2% higher today.

Asian stocks recover

Asian stock indices are mostly higher today recovering after Monday selloff. Nikkei fell 0.6% to 19380.97 as yen extended gains against the dollar on strong haven demand with traders still cautious after jump in tensions following North Korea’s nuclear test Sunday. Chinese stocks are up as Caixin China services PMI showed services sector expanded at a faster pace in August : the Shanghai Composite Index is up 0.3% and Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index is up 0.1% despite stronger Australian dollar against the greenback.

Oil dips

Oil futures prices are inching lower today with fuel pipelines and refineries restarting operations in US after Hurricane Harvey. Crude oil prices fell on Monday with gasoline prices following suit as resumption of refinery and pipeline operations reliеved concerns of fuel shortage.