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And the jitters are back.
Despite the rally on Monday, Wall Street appears poised to open lower as geopolitical concerns return and as investors eye earnings and a possible delay in US tax reforms.
S&P futures were down 0.2 per cent to 2,339.25, while Dow and Nasdaq futures were also off by the same margin to 20,521 and 5,383.50 respectively. Goldman Sachs is expected to cost the price-weighted Dow 40 points after the bank posted profits that missed Wall Street estimates.
Indeed, volatility picked up again with the CBOE’s Vix volatility index rising 2 per cent to 14.98, with the French presidential vote less than a week away. Investors grew anxious about a face-off between far-right candidate Marine Le Pen and far-left candidate Jean-Luc Mélenchon. Adding to the uncertainty was Theresa May’s decision to call for a snap election to help steer the UK through Brexit.
On the US front, ongoing concerns about the nuclear threat from North Korea and US Treasury secretary Steven Mnuchin’s admission that tax reforms are likely to be delayed after a setback in healthcare negotiations with Congress both helped curb appetite for risk assets.
Elsewhere the yield on the US 10-year Treasury, which moves inversely to price, slid 0.028 percentage points to 2.22 per cent, while gold prices were little changed at $1,284.61 a troy ounce.
Meanwhile, the US dollar was down 0.9 per cent against the pound as news of the election sparked chatter about a possible softer Brexit. The DXY dollar index, a gauge of the greenback against a basket of peers, fell 0.3 per cent.