Wall Street may have rebounded yesterday, helped along by those better than expected durable goods order figures but more disappointing earnings news after the closing bell has left index futures pointing towards a sharply lower start to the week’s final session. Critically we have the flash GDP reading for Q3 slated for release ahead of the opening bell so this could well provide some further direction. However with a marked decline from the Q2 figure already expected, anything that comes in much below the forecast 3.3% has the potential to confirm the global economic slowdown and as a result extend the sell-off.
Modest losses across major Asian indices and a disappointing start to trade in Europe will do little to lend any meaningful support either, although with some private US inflation estimates and consumption data due for release later in the day, these could hold some clues over the Fed’s intentions for the last policy meeting of 2018. Anything hinting that they will ease off the pace of rate hikes even just a fraction might be sufficient to at least slow the decline for stocks.
Ahead of the open we’re calling the DOW down 270 at 24715 and the S&P down 42 at 2664.
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