Sharply Lower U.S Stock Market Open Expected

Apparently Asia was also disappointed by last Friday’s poor U.S. consumer sentiment report with Far East stock averages sustaining sharp losses. China didn’t help matters when it indicated that it’s recent step-up in commodities stockpiling was slowing. This is raising fresh concerns as to the sustainability of an economic global recovery. As a result; the large overseas stock declines are front running an expected sharply lower U.S stock market open.

The Dow which lost a sum total of 48 points last week is indicating a 180 point lower open this morning. Confirmation of the weaker open is being felt in both the Euro and Oil. Crude dropped another $1.76 per barrel adding to last week’s loss of $3.42. Last on Oil $65.75.

In forex currency trading, the Euro is 1.24 U.S cents lower against the Dollar at $1.4061. The metals are broadly lower as well. Silver is off 60 cents at $14.09. Gold is down $11.00 at $936.00. Palladium eased $1.00 to $274.00. Platinum is $1229.00 down $28.00 per ounce.

Traders in all markets are now nervously awaiting this week’s slate of economic data desperately hoping to see some positive economic signals. Traders need a reason to start buying again. Unfortunately today’s calendar is thin with only the New York Empire State Index of Manufacturing for traders to hang on to. The latest estimate calls for the August index to rise into positive territory. Look for a reading of 2.2 versus last month’s contraction on .55.

On the domestic front it seems the White House may now be willing to drop it’s divisive plan for a direct government run health care system. While President Obama continues to defend his plan; he is now leaving the door open to alternative approaches succumbing to public outcries over the matter.