Lower Open Likely For US Markets: Oil Plunges

The U. S markets may open lower Friday as indicated by the slide in top U.S. stock index futures. Dow Jones Industrial Average futures fell 70 points at around 4:00 a.m. ET, indicating a negative open of more than 75 points. Futures on the S&P 500 and Nasdaq Composite were also downbeat.

Investors are worried about expanding global economic slowdown and trade skirmishes. Adding to it is the fading hope on a deal between the U.S and China before March 1. After that extra tariffs will be imposed on $200 billion of imports from China.

President Trump’s statement that he would not meet Chinese President Xi Jinping before the March 1 deadline has also rattled investors.

Quarterly earnings results are expected from Arconic, Hasbro, and Philips on Friday.

Oil price falls

Meanwhile, oil prices plunged on Friday apparently by the pressure of economic slowdown. However, supply cuts by OPEC and U.S. sanctions on Venezuela oil lent some support to the crude prices.

The U.S. West Texas Intermediate (WTI) crude futures moved to $52.20 per barrel at 0351 GMT, with a 0.8 percent decline from the last settlement. The WTI fell 2.5 percent during the previous session.

International Brent crude oil futures slipped by 44 cents, or 0.7 percent, at $61.19 per barrel.

Financial markets are affected by concerns over trade disputes between the United States and China and the weakening global economic growth.

“Crude prices returned to the lows of the week as slower growth prospects...could signal a return (of reasons) for inventories to rise,” noted Edward Moya, market analyst at futures brokerage Oanda.

Asian Markets down, Europe mixed

Asian stocks slipped on Friday over the anxiety on the U.S-China trade tensions.

Hong Kong's Hang Seng index slid 0.18 percent in afternoon trade. Chinese tech major Tencent faced a 0.52 percent decline in its share price.

Japan's Nikkei 225 index dipped 2.01 percent while the Topix lost 1.89 percent.

However, shares of Sony zoomed back from the lows and jumped 4.1 percent after it announced a first-ever share buyback of $910 million.

Stocks in Europe showed a mixed trend. The pan-European Stoxx 600 was almost flat with most sectors in the red. Auto stocks performed badly. Among individual stocks, Skanska lost more than 6 percent over a lower dividend that alienated investors.