US pre-open: Markets to open lower amid tumbling oil prices and slumping euro

US pre-open: Markets to open lower amid tumbling oil prices and slumping euro

Price: 90.05

Chg: -2.78

Chg %: -2.99%

Date: 11:50

Price: 2,031.37 Chg: -26.83 Chg %: -1.30% Date: 11:54

US stock futures pointed towards a lower open on Monday, as oil prices tumbled towards a five-year low.
The Dow Jones Industrial Average is expected to open approximately 67 points lower than Friday’s close of 17,832.99, while the S&P 500 and Nasdaq are expected to begin the week around nine and 13 points lower, respectively.

Oil prices declined for the third consecutive day as record supplies from Russia and Iraq fuelled speculations that the global offering that sent crude prices tumbling towards the end of 2014 will persist in 2015.

Meanwhile, the euro dropped to a nine-year low against the dollar, amid concerns that Greece might leave the Eurozone should Siriza, the anti-austerity part currently ahead in the polls, win the elections later this month.

In corporate news, investors will keep a close eye on Ford Motor and General Motors as both car makers are due to release their December sales figures.

Cempra surged over 20% in pre-market trading on the back of positive results from a late stage trial of the oral version of one of its antibiotics, while the decline in oil prices saw Exxon, Chevron and Halliburton lose over 1%.

Economic data for the week is scarce, which means there will be an even greater focus placed on the US non-farm payrolls report, which is due out on Friday.

“Continued dollar strength should continue its weekly theme, no matter what the payroll result on Friday. However, as usual, equity markets are likely to be in for some fierce volatility over the number,” said James Hughes, chief market analyst at Alpari UK.

San Francisco Federal Reserve’s President John Williams is set to speak in Boston at 08:00 ET, to discuss housing, unemployment and monetary policy on an American Economic Association panel.

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