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U.S. futures steady in cautious trade; Dow Jones down 0.03%

Published 12/09/2013, 06:49 AM
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Investing.com - U.S. stock futures pointed to a steady open on Monday, as investors remained cautious after Friday's strong U.S. jobs data fuelled further expectations that the Federal Reserve could soon begin tapering its stimulus program.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.03% dip, S&P 500 futures signaled a 0.04% gain, while the Nasdaq 100 futures indicated a 0.15% increase.

Friday’s U.S. nonfarm payrolls report showed that the economy added 203,000 jobs in November, well above expectations for jobs growth of 180,000. The unemployment rate fell to a five year low of 7.0%.

The data bolstered optimism over the outlook for the economic recovery and reinforced expectations that the Fed will start reducing its USD85 billion-a-month stimulus program at one of its next few meetings.

The biotech sector was likely to be in focus, after Gilead Sciences got approval for a hepatitis C pill that may generate more than USD6 billion in annual sales. The news sent the company's shares up 3.93% in pre-market trade.

Financial stocks were also expected to be active, following reports Goldman Sachs was sued by Singaporean wealth-management client Oei Hong Leong over a USD34.3 million loss on Brazilian real-yen options trades he claimed the bank misled him into making.

Separately, Citigroup and Wells Fargo were accused last week of discriminatory mortgage lending by the city of Los Angeles, which seeks damages for reduced property tax revenue and the costs of maintaining foreclosed properties.

Elsewhere, eight prominent technology companies, suffering by revelations of government spying on their customers', were reportedly mounting a public campaign to urge President Obama and Congress to set new limits on government surveillance.

Shares in Google and Microsoft, who were said to be leading the group, rose 0.29% and 0.10% in early trading.

Across the Atlantic, European stock markets were mixed to lower. The EURO STOXX 50 slipped 0.18%, France’s CAC 40 shed 0.36%, Germany's DAX inched 0.06% higher, while Britain's FTSE 100 fell 0.17%.

During the Asian trading session, Hong Kong's Hang Seng Index edged up 0.29%, while Japan’s Nikkei 225 Index surged 2.29%.


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