US stock index futures sink on the back of longest US government shutdown in its history

At 3.09am Eastern Time, Dow futures were down by 192 points, projecting a negative open of 237.95 points. S&P 500 and Nasdaq futures were also lower, down by 20.50 points and 66.50 points, respectively.

A US trader Source: Bloomberg

Pre-market trading showed United States (US) stock index futures sinking lower on Monday, as trouble continues to brew in the US with the longest government shutdown in the country’s history. December exports and imports for China also dropped unexpectedly, official data revealed, prompting concerns over an economic slowdown there.

At 3.09am Eastern Time, Dow futures were down by 192 points, projecting a negative open of 237.95 points. S&P 500 and Nasdaq futures were also lower, down by 20.50 points and 66.50 points, respectively.

The debate between the Democrats and Republican parties over the border wall continues, providing no near end in sight towards a re-opening of the US government. Facing a gridlock, Washington is caught over US President Donald Trump’s demand for a wall to be built along the US’ Southwestern border.

The shutdown is the longest in the nation’s 242-year history, and around 800,000 federal workers are currently going without pay. The cascading effect of the shutdown has also affected local eateries and shops near the major federal offices, said local reports.

The congress has approved a proposal to give back pay for federal workers affected by the shutdown, but their pay checks will only come in after Washington reaches a deal.

China data released on Monday softened investor optimism

The weak December exports and imports performance in China also contributed to some weakness to the markets. Exports fell by 4.4% from a year ago, while imports sank 7.6%, the worst results since 2016.

China’s export and import numbers had worsened from November, due partly to the effects from the trade war, and China’s growth slowdown.

Separately, a rosier picture was shown for China’s exports for the full 12 months of last year as it logged the highest growth since 2011, the country’s General Administration of Customs revealed on Monday.

China’s economy is still growing steadily in 2019, but it faces external headwinds, said spokesman for the customs administration Li Kuiwen.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Change
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.