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U.S. Stocks May Open Lower On Renewed U.S.-China Trade Worries

wallstreet aug15 12jun19 lt

Stocks futures are pointing to a lower open on Wall Street on Wednesday, with the major averages poised to add to the modest losses posted in the previous session. The Dow futures are currently down by 58 percent after the blue chip index snapped a six-day winning streak on Tuesday.

Lingering trade concerns may weigh on Wall Street as traders turn their attention back to the ongoing U.S.-China trade dispute.

The U.S.-China trade conflict largely took a back seat to President Donald Trump's threatened tariffs on Mexico but may move back into the spotlight ahead of the G20 summit later this month.

In remarks to reporters on Tuesday, Trump suggested he has "no interest" in negotiating unless China agrees to come back to the table to discuss previous terms of a deal he has claimed was nearly complete.

Trump said he expects to meet with Chinese President Xi Jinping at the G20 summit and has warned that he will impose new tariffs on Chinese goods if his counterpart does not attend.

Potentially overshadowing the negative sentiment about trade, another report showing tame inflation may add to optimism about an interest rate cut by the Federal Reserve.

The Labor Department said its consumer price index inched up by 0.1 percent in May after rising by 0.3 percent in April. The uptick in prices matched economist estimates.

Excluding food and energy prices, core consumer prices also edged up by 0.1 percent for the fourth consecutive month. Economists had expected core prices to rise by 0.2 percent.

The report also showed a slowdown in the annual rate of consumer price growth, with the headline index up by 1.8 percent year-over-year in May compared to the 2.0 percent increase in April.

The annual rate of core consumer price growth also slowed to 2.0 percent in May from 2.1 percent in the previous month.

Stocks failed to sustain an initial move to the upside and spent the better part of Tuesday's trading showing a lack of direction. The major averages bounced back and forth across the unchanged line before closing slightly lower.

After closing higher for six consecutive sessions, the Dow slipped 14.17 points or 0.1 percent to 26,048.51. The Nasdaq edged down 0.60 points or less than a tenth of a percent to 7,822.57, while the S&P 500 dipped 1.01 points or less than a tenth of a percent to 2,885.72.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index fell by 0.4 percent, while Hong Kong's Hang Seng Index plunged by 1.7 percent amid ongoing protests over a proposed extradition bill.

The major European markets are also giving back ground after trending higher in recent sessions. While the German DAX Index has dropped by 0.4 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both down by 0.7 percent.

In commodities trading, crude oil futures are tumbling $1.40 to $51.87 a barrel after inching up $0.01 to $53.27 a barrel on Tuesday. Meanwhile, after rising $1.90 to $1,331.20 an ounce in the previous session, gold futures are climbing $6.20 to $1,337.40 an ounce.

On the currency front, the U.S. dollar is trading at 108.37 yen compared to the 108.52 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1317 compared to yesterday's $1.1326.

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