Wall Street set for flat
open as investors remain cautious
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[June 17, 2016]
By Yashaswini Swamynathan
(Reuters) - Wall Street was set to open
flat on Friday as investors tread cautiously amid global economic
growth worries and an impending referendum on Britain's European
Britain will vote on June 23, an event that has weaved in
uncertainty across the globe, battering stocks and bond yields for
the past week and spiking demand for safe-haven assets such as gold
and the yen.
However, the murder of a pro-"Remain" British politician on Thursday
led to the suspension of campaigning for the referendum.
Analysts said the incident could rally a sentiment supporting
Britain to remain in the EU, at a time when the "Leave" campaign was
Wall Street broke its five-day losing streak on Thursday.
Risky assets such as oil were back in favor on Friday, with the
commodity rising more than 2.5 percent, the first time in seven
"Today I expect bit of a flattish day.... We are probably going to
drift along until there's a decision. If the UK exits, people are
going to be very panicky about what will happen," said Phil Davis,
chief executive officer of PSW Investment in New Jersey.
Dow e-minis were down 9 points, or 0.05 percent at 8:39 a.m.
ET (1233 GMT), with 32,450 contracts changing hands.
S&P 500 e-minis were down 2.50 points, or 0.12 percent, with
263303,668 contracts traded.
Nasdaq 100 e-minis were down 2.50 points, or 0.07 percent, on volume
of 28,673 contracts.
The U.S. Federal Reserve left short-term interest rates unchanged on
Wednesday and cut its forecast for economic growth, but stock
markets' reaction to the largely expected outcome has been muted.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., June 9, 2016. REUTERS/Brendan McDermid
U.S. housing starts in May fell to a less-than-expected 1.16 million in May
while analysts had expected 1.15 million.
Viacom was down 1.31 percent to $44.46 premarket after estimating
lower-than-expected quarterly earnings. The stock was the biggest loser among
Gun maker Smith & Wesson jumped 11.7 percent to $24.31 premarket after the
company reported better-than-expected quarterly sales.
Oracle rose 1.9 percent to $39.40 after the company reported
better-than-expected quarterly revenue.
(Reporting by Yashaswini Swamynathan in Bengaluru)
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