Thursday February 28th

28-02-2019

Dow futures slightly lower as US-North Korea summit cut short with no agreement

U.S. stock index futures were lower Thursday morning, after the U.S.-North Korean summit in Vietnam ended without an agreement. At around 05:45 a.m. ET, Dow futures were 57 points lower, indicating a negative open of more than 32 points. Futures on the S&P 500 and Nasdaq Composite were both seen relatively downbeat. President Donald Trump and North Korean leader Kim Jong Unwere unable to reach a deal at the end of two days of meetings in Hanoi, the White House said Thursday. Earlier Trump and Kim, seated together at a conference table, appeared confident about the prospect of improving diplomatic relations. But, the pair were ultimately unable to agree after the U.S. refused North Korean demands for sanctions relief. "They wanted the sanctions lifted in their entirety and we couldn't do that," Trump said at a news conference. The U.S. president said no plans had been made for a third summit. On the data front, a first reading of fourth-quarter real GDP will be released at around 8:30 a.m. ET. Chicago PMI figures for February and Kansas City Federal Reserve's latest survey are both set to follow later in the session. In corporate news, AB InBev, Encana and PG&E are among the major companies expected to report their latest figures before the opening bell. Dell, VMWare and Autodesk are all scheduled to publish their latest quarterly results after market close. Shares in South Korea plummeted, while the Korean won also slipped, after the White House announced that the ongoing Vietnam summit between U.S. President Donald Trump and North Korean leader Kim Jong Un on Thursday had been cut short with no agreement reached. The Kospi in South Korea dropped 1.76 percent to close at 2,195.44 while the Kosdaq tumbled 2.78 percent to finish its trading day at 731.25. Elsewhere in Asia, mainland Chinese stocks were mixed on the day, with the Shanghai composite declining 0.44 percent to close at 2,940.95, while the Shenzhen component advanced 0.290 percent to finish its trading day at 9,031.93. The Shenzhen composite rose 0.351 percent to close at 1,546.33. Hong Kong's Hang Seng index was down more than 0.4 percent in its final hour of trading. Japan's Nikkei 225 and Topix both declined 0.79 percent to 21,385.16 and 1,607.66, respectively. Oil prices fell on Thursday, as U.S.-China trade tensions persisted, the Chinese economy showed signs of slowing and record U.S. production undermined OPEC-led output curbs. Brent crude was down 61 cents or 0.9 percent at $65.78 per barrel by 0955 GMT. U.S. West Texas Intermediate (WTI) crude was down 40 cents or 0.7 percent at $56.54. Gold prices on Thursday held near two-week lows touched in the previous session, as the dollar recouped losses after cautious comments from U.S. Trade Representative Robert Lighthizer dented investors' hopes for a closure to the tariff war with China. As of 0727 GMT, spot gold was 0.2 percent higher at $1,322.16 per ounce, while U.S. gold futures were up 0.1 percent at $1,322.