|Published : 16 Sep 2016, 21:39:37|
Wall Street opens lower
NEW YORK, Sept 16 (Reuters): Wall Street was set to open lower on Friday, in tandem with oil prices, and as financial stocks came under pressure in the wake of a massive $14 billion fine slapped on Deutsche Bank.
The far bigger-than-expected fine was levied by the US Department of Justice to settle claims that the German bank missold mortgage-backed securities.
Deutsche Bank's US-listed shares were down 8.5 per cent in premarket trading. Dow component Goldman Sachs fell 0.6 per cent, while JPMorgan dropped 0.5 per cent. Oil prices fell 1.6 per cent on worries of oversupply. Energy stocks were among the biggest losers among S&P 500 components. Dow e-minis were down 59 points, or 0.33 per cent at 8:33 a.m. ET, with 29,133 contracts changing hands. S&P 500 e-minis were down 8 points, or 0.37 per cent, with 262,735 contracts traded.
Nasdaq 100 e-minis were down 16 points, or 0.33 per cent, on volume of 39,386 contracts.
Investors also await the Federal Reserve's meeting starting next Tuesday. While traders have very low expectations of an interest rate hike, investors will be keen for commentary on how the central bank views on the recent sluggish economic data. The data and contrasting comments from Fed officials on rate hikes have caused the markets to oscillate and volatility to spike in the past few days.