US stocks follow European counterparts lower
Major equity indexes in the U.S. started the day lower on Thursday, reflecting the bearish pressure seen on their European counterparts.
Falling crude oil prices weighed on the energy sector in during the first half of the day. Moreover, dismal third-quarter earnings results from the retail giant Unilever hurt the market sentiment as well. As of writing, the UK's FTSE 100 and Germany's DAX are down 0.4% and 0.7% respectively. Amid the political turmoil in Spain, the IBEX is looking to close the day 1% lower.
- Spain: The game is not yet over for Catalonia’s crisis - Natixis
The risk-off mood dragged the US stocks lower in the pre-market trading, forcing them to start the day with losses. At the moment, the Dow Jones Industrial Average is down nearly 100 points, or 0.45%, at 23,058.67. However, the index's losses could stay limited later in the day as the buyers are likely to defend the critical 23K mark. In the meantime, the S&P 500 is losing 0.45%, or 12 points, at 2,548 while the Nasdaq Composite is dropping 0.87%, or 56 points, at 6,566.38.
Today's data from the U.S. showed that the number of Americans filing for unemployment benefits fell to its lowest level in more than four decades at 222K despite the negative impact of Hurricanes Irma and Maria. Another data released by the Federal Reserve Bank of Philadelphia on Thursday revealed that the manufacturing activity in the region expanded at a faster pace than what the markets were anticipating.
Key headlines of the day:
- US: Weekly initial claims was 222,000, a decrease of 22,000 from previous week
- Philly Fed: Manufacturing firms reported continued growth in October
- Potential economic/political implications of the Catalonian crisis – HSBC
- ECB to outline the main elements of how the QE programme will function – RBC CM
- Brent: Cannot rule out a decline to 56.95 - Natixis