Investing.com – Wall Street futures pointed to a slightly lower open on Friday as reversals occurred in major financial markets on assumption that Brexit risk may be decreasing and while investors looked forward to the most recent housing data stateside.
The blue-chip Dow futures fell 20 points, or 0.11%, by 10:56AM GMT, or 6:56AM ET, the S&P 500 futures lost 4 points or 0.18%, while the tech-heavy Nasdaq 100 futures traded down 4 points, or 0.09%.
Wall Street managed to turn the tide in Thursday’s session putting an end to five-day stretch of losses and financial markets worldwide seemed to follow its lead on Friday.
Concern over the global economy, particularly the possible impact of the Brexit, pushed investors to withdraw money from riskier assets in favor of those considered to be safe-havens.
The tragic murder of Jo Cox, lawmaker of the British Labour Party, and supporter of the Remain campaign on Thursday made British politicians decide to suspend campaigning for the June 23 referendum on the U.K.’s membership in the European Union (EU) on both Thursday and Friday.
While several polls throughout the week showed the preference to leave the EU, known as a Brexit, taking the lead, some experts suggested that Cox’s death may spur sympathy for the Remain campaign and turn the tide.
In this light, global markets staged a reversal beginning late Thursday with Asian and European equities trading broadly higher on Friday
Risk aversion pushed UK, Japan and Germany 10-year bond yields to record lows this week, but the reversal brought bund yields back into positive territory on Friday.
Traders also took profit in gold on Friday, pulling the precious metal back from a 23-month peak at $1,316.40.
Oil managed to pare what was on track to be its largest weekly loss in more than two months, rising for the first time in seven days.
This while investors looked ahead to oilfield services provider Baker Hughes’ data on the number of rigs drilling for oil in the U.S.
The number increased by three last week to 328, the second straight weekly rise, fueling speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
In a light economic calendar, investors will digest the latest references form the U.S. housing market with building permits and housing starts for May scheduled for release at 12:30GMT, or 8:30AM ET.