7th Oct 2013 12:37
LONDON (Alliance News) - US stock futures are pointing to a lower open on Wall Street Monday as investors look to avoid risk by moving away from equity portfolios as the US government shutdown enters a second week and fears grow the country will fail to agree a new debt ceiling in time to avoid a default.
The Nasdaq is expected to open 0.7% lower, the S&P is called down 0.8%, and the DJIA down 0.9%.
As the US government remains shutdown and the political stalemate drags on, stocks have been falling across the world, with traders looking to shun risky assets, and therefore equities, until more clarity emerges concerning a political resolution for the US budgetary impasse and the debt limit.
Having followed Asian markets lower, UK equities continue to trade firmly in the red. Prior to the US market open, the FTSE 250 is down 0.9% at 14,710.18, the AIM All-Share index is down 0.2% at 780.95, and the FTSE 100 is down 0.8% at 6,404.29, having dipped below 6400 earlier in the day to hit a daily low of 6,391.47.
Similarly, European stocks have been hit hard. The French CAC40 is down 0.8% and the German DAX is down 0.9%.
Every FTSE 350 sector index is trading lower, with general retailers performing the worst, down 1.9%.
At an individual stock level, on a day with fewer gainers then usual, Suretrack Monitoring stands out. The AIM-listed company's shares have jumped 663% to 0.61 pence as its newly consolidated share issue started trading on AIM. The company converted itself into an investment firm, selling its operating unit. As part of the conversion, Suretrack has issued new shares in order to raise funds necessary for investments. The company then reorganized its share capital, consolidating groups of 11 shares of 0.05p into one of 0.55p and then subdividing the new shares into one ordinary share of 0.05p and one deferred share with a nominal value of 0.50p, which does not trade. Suretrack is by far the biggest gainer on the AIM index.
With only US consumer confidence data at 2000 BST due to be released, US politics will remain the focus of traders throughout the day.
By James Kemp; [email protected]; @jamespkemp
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Streaksai