RTTNews - US stocks are poised to start the week on a sober note amid increasing concerns about the economic recovery and stock valuations ahead of the earnings season. A report from World Bank further trimming the growth forecast for the year 2009, and softening oil prices might keep the investors on the tenterhooks. Investors also await a slew of economic data slated for release during the week including the latest decision on interest rates with crossed fingers.
As of 6.30 am ET, the Dow Futures were down 46 points, the S&P Futures were down 5.90 points, and the Nasdaq 100 futures were down 10 points.
On Friday, the stocks ended mixed as investors preferred to stay on the sidelines amid a lull in economic data on the day, looking forward to a slew of economic figures in the week beginning June 22.
While the Dow closed down 15.87 points or 0.2% at 8,540, the Nasdaq closed up 19.75 points or 1.1% at 1,827 and the S&P 500 closed up 2.83 points or 0.3% at 921.
The World Bank reduced its global GDP estimate as well as the outlook for most other economies and warned of a large decline in international capital flows amidst financial market fragility and recession. The Washington-based lender now forecasts the world economy to shrink 2.9% this year, larger than its earlier prediction of a 1.7% decrease.
According to the latest Global Development Finance 2009 report, net private capital inflows to developing countries dropped to US$707 billion in 2008 amidst global economic recession and financial market fragility. Further, international capital flows are estimated to drop again in 2009 to US$363 billion.
Anglo-Swiss mining company Xstrata plc,with a current market capitalization of $33 billion, reportedly approached rival Anglo American plc, having a market capitalization of $35 billion, seeking their consideration regarding a merger of equals of the two companies.
Drugstore operator Walgreen will be reporting results for the third quarter before the market opens for trading. Analysts expect the company to report earnings of $0.56 per share for the quarter.
The price of crude oil declined below the $69 barrel a mark and is presently at $68.29 on demand concerns. The Euro is losing ground against the the U.S dollar following the revision of global forecast by the World Bank and better-than-expected business sentiment index numbers from Germany.
German business sentiment improved to 85.9 in June from a revised reading of 84.3 in May, a monthly survey the Munich-based Ifo Institute for Economic Research showed Monday.
European markets are trading in the negative territory amid concerns about global recovery. The CAC-40 Index in France is losing 1.51%, DAX in Germany is down 1.15% and UK's FTSE is down 1.05% .
Most of the Asian markets, excluding India, ended in positive territory on optimism about global recovery.
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