LDN - Business

Futures fall on Brexit worries, Trump's dollar comments

[January 17, 2017] By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures fell the most this year as investors sought safe-haven assets following President-elect Donald Trump's comments on the dollar and British Prime Minister Theresa May's Brexit speech.

* May said her plans for Britain's exit from the European Union mean that it could no longer remain in the single market but she would seek a deal that would take in some aspects of membership.

* The dollar index <.DXY> fell 0.62 percent against a basket of major currencies after Trump told the Wall Street Journal that U.S. companies could not compete with China "because our currency is too strong. And it's killing us".

* The dollar hit a 13-year high following Trump's election in November on bets that he would cut taxes and increase infrastructure spending that would boost economic growth.

* However, the currency has fallen since Jan 9 as Trump has given little details on how he will keep his promises. Dollar's strength could be put to test again on Inauguration Day on Friday.

* Gold prices <XAU=> surged more than 1 percent, trading at a near two-month high, while the Japanese yen rose to a six-week high.

* Big U.S. banks kicked off fourth-quarter earnings season on Friday on a sanguine note, bringing some cheer to the market. A late pop in Facebook <FB.O> nudged the Nasdaq to a record high.

* Morgan Stanley <MS.N> rose 1.6 percent to $44.49 in premarket trading on Tuesday after reporting a quarterly profit that doubled.

* Earnings for S&P 500 companies are estimated to have risen 6.2 percent in the latest quarter, according to Thomson Reuters I/B/E/S.

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Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S., January 13, 2017. REUTERS/Lucas Jackson

* U.S. markets were closed on Monday for Martin Luther King Jr Day.

* Federal Reserve Board Governor Lael Brainard is scheduled to speak on monetary and fiscal policy in Washington at 10:00 a.m. ET (1500 GMT).

* Clayton Williams shares were up nearly 30 percent at $135 after Noble Energy said it would buy the oil producer for about $2.7 billion.

* Reynolds American were up 3.6 percent at $58 after British American Tobacco agreed to buy its U.S. rival for $49.4 billion.

Futures snapshot at 6:52 a.m. ET:

* Dow e-minis were down 91 points, or 0.46 percent, with 34,690 contracts changing hands.

* S&P 500 e-minis were down 11.75 points, or 0.52 percent, with 213,906 contracts traded.

* Nasdaq 100 e-minis were down 26 points, or 0.51 percent, on volume of 35,961 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)

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