Futures lower on Deutsche
Bank concerns
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[September 30, 2016]
By Yashaswini Swamynathan
(Reuters) -
U.S.
stock index futures were slightly lower on Friday as fresh worries about
Deutsche Bank's woes unsettled investors.
The largest German lender's stock fell to a record low on Friday on news
that a number of hedge funds had pulled out collateral as the bank faces
a $14 billion demand from U.S. authorities for misselling
mortgage-backed securities.
U.S. stocks fell sharply on Thursday amid choppy trading as banks took a
beating due to declines in Deutsche Bank and Wells Fargo <WFC.N>, whose
chief executive was rebuked by lawmakers over his handling of sales
abuses.
Citigroup <C.N> was down 0.66 percent premarket, while U.S.-listed
shares of RBS <RBS.N> fell by a similar margin. Stocks of other big U.S.
banks were little changed.
Oil prices fell 1.7 percent as investors cashed in on a two-day rally
after OPEC members agreed to curb output to stabilize an over-supplied
market. [O/R]
The markets are due for increased volatility as the third-quarter
earnings season approaches and as uncertainty brews over the outcome of
the U.S. presidential election in November.
A report at 8:30 a.m. ET (1230 GMT) is expected to show core personal
consumption expenditure, the Federal Reserve's preferred inflation
measure, rose 0.2 percent in August.
At 10:00 a.m. ET, investors will get the final reading on the University
of Michigan's consumer sentiment index, which is expected to have edged
up to 90 this month from 89.8 the previous month.
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Dallas
Fed president Robert Kaplan is scheduled to speak at an event at 1:00 p.m. ET.
CalAmp <CAMP.O> was down 17.7 percent after the wireless device maker reported
quarterly revenue that missed analysts' estimates.
Extended Stay America was down 3.7 percent after the company priced a secondary
offering below the Thursday closing price of its stock.
Futures snapshot at 7:34 a.m. ET:
Dow e-minis were down 14 points, or 0.08 percent, with 33,597 contracts
changing hands.
S&P 500 e-minis were down 1 points, or 0.05 percent, with 221,287 contracts
traded.
Nasdaq 100 e-minis were down 5 points, or 0.1 percent, on volume of 33,360
contracts.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)
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