US pre-open: Stocks seen a little lower after Brussels attacks
US futures pointed to a slightly lower open on Tuesday as terror attacks in Brussels dented investors’ appetite for risk.
At 1125 GMT, Dow Jones Industrial Average futures were down 0.2%, while S&P 500 and Nasdaq futures were 0.3% lower.
As investors looked for somewhere safe to park their cash, gold and government bonds gained ground.
At the same time, oil prices were a little weaker. West Texas Intermediate was down 0.4% to $41.34 a barrel and Brent crude was of 0.3% to $41.40.
A senior OPEC delegate has said Saudi Arabia was prepared to sign up to an oil output freeze next month even if Iran does not take part.
“US markets look set for a lower open as risk-off sentiments looks to cross the pond in the wake of more terrorist attacks in Europe,” said Jasper Lawler, market analyst at CMC Markets.
Stocks in Europe were in the red but off lows, with travel and leisure issues suffering the brunt of the losses.
At least 26 people were killed and others injured as suicide bombers launched twin attacks on Brussels’ Zaventem airport and the city’s Maalbeek metro station.
Belgian broadcaster RTBF, citing a federal prosecutor, confirmed the airport bombings were a suicide attack. The blasts came just four days after the capture in Brussels of Salah Abdeslam, the main suspect in the jihadist attacks in Paris on 13 November 2015 that killed more than 130 people.
Agence France Presse cited Pierre Meys, a spokesman for the Brussels fire brigade, as saying at least 21 people were dead in the two attacks, with 11 killed at the airport.
On the corporate front, shares in technology giant Apple slipped in pre-market trade as analysts were left unimpressed by the company’s product event on Monday.
Travel and leisure stocks were under pressure in the wake of the Brussels attacks. Cruise operator Carnival Corp was down 3.1% in pre-market trade while Expedia was 1.7% lower and Priceline was off 1.2%.
Still to come, investors will look to a speech on the economy and monetary policy from Chicago Federal Reserve President Charles Evans later in the day, while Philadelphia Fed President Patrick Harker is due to speak about economic policies.
In currencies, the dollar was 0.6% firmer against the pound and 0.3% stronger versus the euro. However, it fell 0.4% against the yen as investors opted for safety.