U.S. stock-index futures were little changed as investors weighed a rally earlier in the week and the impact of the Federal Reserve’s rate increase on global markets.
Standard & Poor’s 500 Index futures expiring in March declined less than 0.1 percent to 2,023.5 at 10:55 a.m. in London, trimming a drop of as much as 0.6 percent. The equity gauge yesterday snapped its biggest three-day rally since October as crude slid and commodities deepened a drop, prompted by a stronger dollar in the wake of the rate rise. Dow Jones Industrial Average contracts declined 36 points to 17,320.
The S&P 500’s drop yesterday erased Wednesday’s post-Fed gains and trimmed its biggest weekly advance in a month. The benchmark rebounded as much as 13 percent from an August low through November, before giving up 3.2 percent through yesterday. Stocks have fallen in December, bucking the historical seasonal trend of gains, and heading for their biggest annual drop since the 2008 financial crisis.
Investors will watch data for signs on the strength of the U.S. economy, with a report on December manufacturing and services due later today.
Hong Kong equities ended flat on Monday as another record close on Wall Street and more gains in Shanghai were offset by profit-taking.
The benchmark Hang Seng Index edged down 10.46 points to 25,404.81 on turnover of HK$ 84.94 billion (US$ 10.96 billion).
Shanghai rose 0.88 percent as mainland markets continue their slow recovery after a month-long sell-off that saw a more than 30 percent plunge and trillions wiped off valuations.
Hong Kong rallied towards the end of last week, in line with Chinese shares, but investors took their cash off the table Monday despite an upbeat lead from Wall Street and an easing of the Greek debt crisis.
The benchmark Shanghai Composite Index added 34.76 points to 3,992.11 on turnover of 688.3 billion yuan ($ 112.5 billion). The index rose as much as 1.62 percent during the day, passing above the symbolic 4,000-point level before trimming gains.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 1.82 percent, or 39.87 points, to 2,230.29 on turnover of 631.8 billion yuan.
The market regulator on Monday denied a media report saying that it was studying how stabilisation funds could exit the market and pledged to keep reassuring investors, while preventing systematic risks.
The state-backed China Securities Finance Corp., tasked with restoring stability to the stock market, was amassing two to three trillion yuan from financial institutions including commercial banks, reports said last week.