CAUTIOUS WATERS AHEAD

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NEW YORK (CNNMoney) — U.S. stocks were poised for losses at Monday’s open, as investors reacted to Japan’s intervention in global currency markets and remain cautious ahead of a week chock-full of economic events.

The Japanese government acted early Monday to push down the yen’s value in international currency markets. It marked the third time this year Japan’s leaders have curbed the yen’s rise, as they worry a stronger yen could make the country’s exports less competitive internationally.

The move immediately sent the dollar rising against major global currencies, and pressured commodities that are priced in the dollar.

Little else is on the agenda for Monday, but the rest of the week promises a busy schedule, including a G-20 meeting in France, the latest monetary policy decision from the Federal Reserve, and monthly jobs data out of the United States.

Ahead of the opening bell Monday, Dow Jones industrial average (INDU), SP 500 (SPX) and Nasdaq (COMP) futures all retreated roughly 0.9%. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

After surging Thursday on news that European leaders had reached a debt agreement, U.S. stocks ended little changed Friday, as questions and doubts about the deal emerged.

Aside from humdrum trading on Friday, markets are poised to close out what has been a stellar month. The Dow is up 12% in October, while the SP 500 and Nasdaq have surged more than 13%.

MF Global’s warning bells

Companies: MF Global (MF) shares were halted in premarket trading, on pending news. Media reports indicated the brokerage is expected to file for bankruptcy.

Allstate (ALL, Fortune 500) insurance and Winn-Dixie Stores (WINN, Fortune 500) will release their quarterly results after the closing bell.

Analysts surveyed by Briefing.com expect Allstate’s earnings to have dropped sharply to 13 cents per share from 83 cents a year earlier. Winn-Dixie is expected to lose 38 cents per share after losing 42 cents per share last year.

Economy: A report on manufacturing in the Chicago region is due at 9:45 a.m. ET.

Other regional surveys have recently shown solid improvement in manufacturing activity in October, but economists are expecting Monday’s report to show manufacturing activity was nearly flat in the Chicago area.

World markets: European stocks tumbled in morning trading. Britain’s FTSE 100 (UKX) fell 1%, the DAX (DAX) in Germany dropped 1.3% and France’s CAC 40 (CAC40) lost 1.7%.

Asian markets ended lower. The Shanghai Composite (SHCOMP) edged lower 0.2%, the Hang Seng (HSI) in Hong Kong shed 0.8% and Japan’s Nikkei (N225) slid 0.7%.

Currencies and commodities: The dollar rose against the euro, the British pound and the Japanese yen Monday.

Oil for December delivery fell 64 cents to $92.68 a barrel.

Gold futures for December delivery tumbled $23.90 to $1,723 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.25% from 2.31% late Friday.  To top of page

Article source: http://rss.cnn.com/~r/rss/money_topstories/~3/VSQndvjM1SY/index.htm

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