Wall Street Set For Lower Open as Dollar’s Decline Weighs on Sentiment

U.S. stock futures were indicating a modest decline at Friday’s open as a dramatic sell-off in the dollar precipitated by natural disasters and geopolitical risks weighs on Wall Street. Overseas market are also defensive with soft Chinese trade data and the meteoric rise in the euro keeping the pressure on China’s Shanghai and most euro-zone bourses.

The dollar fell to its lowest level in 10-months against the yen and to a two and-a-half year low against the euro as traders re-calibrate the likelihood for the Federal Reserve to raise rates in the aftermath of two catastrophic hurricanes, and as tensions with North Korea remain at a slow boil. Although a weaker dollar is beneficial to U.S. multinationals, the depth of the decline has investors worried of more systemic weakness, especially as the 10-year Treasury note slips further to 2.0%.

Friday’s economic agenda includes data on wholesale inventories and sales at 10am ET, followed at 1:00pm ET by the weekly Baker Hughes oil rig count. At 3:00pm ET, consumer credit data will be released.

In corporate news, shares of Equifax (EFX) were falling in pre-market trade after the company said a data breach may have compromised the personal information of 143,000 individuals. Shares of Disney (DIS) are also losing ground after the entertainment giant’s CEO warned on Thursday that full-year earnings could fall short of analyst’s expectations.

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