Replies to post #178495 on Zeev's Turnips Patch-No Politics (ZEEV)

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Wall St seen opening lower as dollar reels down
Monday December 8, 6:40 am ET


PARIS, Dec 8 (Reuters) - Wall Street is set to start the week lower as a dearth of fresh corporate news and data will force investors to focus on the fresh slide by the dollar and concerns over the strength of the U.S. economic rebound.
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The greenback fell to a new record low against the euro (EUR=) for a seventh session in a row on Monday after Friday's disappointing U.S. jobs data fuelled worries the recovery in the world's biggest economy may not be as solid as markets expected.

"Everyone is watching the dollar," said Steve Previs from Jefferies International. "The dollar and data are what's going to set the mood for the weeks to come."

While a softer dollar makes U.S. exports more competitive overseas, it raises the risk that foreign investors will suffer currency losses on their dollar-denominated assets, making them less attractive.

"I think we are going to see a little bit of sell-off until the end of the year as people start thinking that fourth-quarter earnings and results going forward may not be as good as expected," Previs said.

Besides the dollar, Previs said investors were keenly awaiting fresh economic indicators, particularly the U.S. trade balance and the University of Michigan preliminary report of December consumer sentiment, both due on Friday.

"A Michigan index a little weaker than expected would certainly trigger a pretty solid sell-off."

Recreational vehicle maker Fleetwood Enterprises (NYSE:FLE - News), homebuilder Hovnanian Enterprises (NYSE:HOV - News) and supermarket chain Ingles Markets (NasdaqNM:IMKTA - News) are among the trickle of companies due to hand in quarterly scorecards on Monday.

By 1120 GMT, U.S. stock index futures pointed to a lower start for U.S. benchmarks.

On Friday, the Dow Jones industrial average (^DJI - News) shed 0.7 percent to close at 9,863, while the technology-studded Nasdaq Composite (NasdaqSC:^IXIC - News) ended 1.6 percent lower at 1,938 points.

Investors will also set their eyes on the Federal Reserve's interest-rate setting meeting on Tuesday, although many market observers do not expect the powerful central bank to make any hint at interest rate rises on the horizon.

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