US pre-open: Futures slip as data blackout hampers rate-cut expectations

(Sharecast News) - US stock markets were expected to decline further on Friday, following a sharp sell-off the previous session, with an interest-rate cut before the end of the year looking increasingly unlikely in the absence of crucial economic data. By 1050 GMT, futures on the Dow were down 0.2% as the benchmark continues to retreat from Wednesday's record closing high of 48,254.82. Futures on the S&P 500 and Nasdaq were trading 0.3% and 0.5% lower, respectively.

US markets faced a dramatic sell-off on Thursday - the Dow, S&P 500 and Nasdaq dropped _____ respectively - after it emerged that official reports on inflation and non-farm payrolls for October were "likely never" to be published, according to the White House, as the government shutdown disrupted the necessary gathering of data by statisticians.

"The relief of a shutdown resolution has quickly given way to frustration: the October data appears to be non-existent, and thus we may have to make do with Septembers data," said Joshua Mahony, chief market analyst at Scope Markets.

"Monday's reopening rally proved short-lived, with valuation concerns accompanied by a realisation that the Fed will likely take a cautious approach to easing."

Further dampening sentiment was a barrage of disappointing economic data releases in China, where annual growth in industrial production and retail sales dropped to a 14-month low, and fixed-asset investment growth sank by its most in over five years.



As a result, US-listed shares of Chinese tech companies like Alibaba, Baidu and JD.com were falling ahead of the opening bell.

In other news, oil prices were firmly higher on the back of reports that Ukraine hit a Russian export hub with a drone strike. WTI crude was up 2.6% at $60.20 a barrel early on.