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Premarket: Nasdaq 100, and S&P 500 Futures Tumble on Iran-U.S. Tensions

nasdaq 100

Nasdaq 100 futures point to a sharp drop in Wall Street as investors reacting to news that a top Iranian general killed in a U.S. airstrike in Baghdad. Iran responded immediately by describing the strike as an act of war, promising a retaliatory attack in response. The news led to a sharp rise in gold and crude oil prices.

The Nasdaq futures are 1.51% lower at 8,757, the Dow Jones futures are 1.23% lower at 28,487, while the S&P 500 futures are 1.36% lower at 3,215.

Investors will also focus today on Manufacturing ISM data from USA due at 15:00GMT. Analysts expect a 48.30 reading above the previous reading of 48.1, while the ISM Manufacturing Employment expected at 53.50 much higher than the prior reading of 46.6.

Yesterday, the number of Americans filing for jobless claims benefits dropped last week, a signal for a strong U.S. labour market.

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Stocks under Selling Pressure in Europe

European stocks tumble as traders sell risky assets. The DAX Index slumps after U.S. air strike in Iran and is 1.72% lower at 13,155. The CAC 40 is 0.47% lower at 6,012 while the FTSE Mib gives up 1.10% at 23,572. In London the FTSE 100 retreats amid increased geopolitical tensions.

Asian stock indices finished lower. The Hang Seng ended 0.32% lower at 28,451, the Shangai Composite index finished 0.05% lower at 3,083, while in Singapore the FTSE Straits Times index was 0.41% lower at 3,238.

In cryptocurrencies we had a strong rebound after the news from Iran. Bitcoin is 5.17% higher at $7,310. Ethereum adds 4.04% at $131.88 while Litecoin is 5.98% higher at $41.67.

Safe Haven Assets on Demand

Gold is the big winner today as it is trading 1.12% higher at $1,546 before the opening bell in Wall Street despite a stronger US dollar, as investors buying safe haven assets. Crude oil also registers hefty gains as it trades 3.73% higher at $63.45 per barrel.