U.S. Markets Set to Open Higher as Investors Anticipate Economic Data

By Avantika Chilkoti 

-- S&P 500 futures rise 0.3%

-- Brent crude oil price gains 2.2%

-- Most Asian stocks down; European shares waver

U.S. stock futures ticked higher ahead of the opening bell on Monday, as investors prepared for a week filled with fresh economic data and results from some of the world's biggest companies.

American Express was down 0.5% in premarket trading, following results on Friday which showed mounting expenses.

In Asia, China's new market for homegrown technology stocks opened with a rally Monday. The Shanghai Stock Exchange's Science and Technology Innovation Board, also known as the STAR market, was launched this week as part of the country's effort to lead the world of global tech. Of the 25 companies traded on the exchange, a semiconductor group and medical instrument maker surged the most.

Other Asian markets dropped, however, with China's benchmark Shanghai Composite Index and Hong Kong's Hang Seng down 1.3% and 1.4%, respectively.

Concerns about public unrest rattled the Hong Kong stock market Monday, with property developers and retail landlords leading the decline. Sun Hung Kai Properties, the city's largest developer by market capitalization, fell 2.6%, its biggest drop in two weeks.

Francis Lun, chief executive officer at brokerage Geo Securities, said the financial market has begun to feel the pinch as lingering public unrest will likely hurt retail spending and investment sentiment.

"The longer these demonstrations and unrest persist, the more serious of a toll both in real and psychological terms will negatively impact on Hong Kong's financial center and retail sentiment," Mr. Lun said.

In the U.S. and Europe, investors were braced for fresh economic data this week as expectations for interest-rate cuts from both major central banks grow. The U.S. Commerce Department will report second-quarter growth figures on Friday. And investors are looking ahead to the European Central Bank's next policy meeting on Thursday.

Central banks across the globe are expected to undertake fresh stimulus measures in the coming months.

"In the next six months we are looking for evidence that either 'Goldilocks' continues or we get greater evidence that the global economy is slowing down," said Paul Brain, head of fixed income at Newton Investment Management, the BNY Mellon subsidiary, referring to the period when the global economy has been neither too hot nor too cold.

The European market wavered Monday as earnings season rolled on. Shares in Dutch technology group, Koninklijke Philips, jumped 4% after the company posted better-than-expected results early Monday, with rising sales and margins.

Meanwhile, shares in Whitbread, the hotels and restaurants group that includes Premier Inn, lost 3.3%. The company said it had returned GBP2.5 billion ($3.1 billion) to shareholders following the sale of its Costa coffee chain last year.

In commodities, the price of Brent crude rose to $63.70 a barrel as tensions mounted in the Persian Gulf. Iran seized a British-flagged tanker in the Persian Gulf on Friday.

--Joanne Chiu contributed to this article.

Write to Avantika Chilkoti at [e-mail]

(END) Dow Jones Newswires

July 22, 2019 07:22 ET (11:22 GMT)

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