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Omens of a lower open
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October 28, 1997: 8:02 a.m. ET
U.S. markets face another drop at opening bell according to indicators
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NEW YORK (CNNfn) - Investors may not like it, but most major indicators point to another sharply lower open for U.S. markets on Tuesday.
The S&P futures trading on the Globex system struggled for most of early trading Tuesday, wavering between losses of 11-14 points, occasionally dropping back to a level of 15, at which trading halts occur.
By early morning, the indicator stood at the halted level of 859.00.
The U.S. bond market remained stable early Tuesday, with the benchmark 30-year Treasury bond up 2/32, edging the yield back down to 6.14 percent.
The sell-off continued in Asian markets Tuesday, a precursor to possible hits on the U.S. exchanges. Hong Kong's blue chip Hang Seng index registered its biggest point drop ever on Tuesday.
European markets were quick to pick up on the uncertainty. The Franfurt DAX index in Germany was the biggest loser in morning trading, down 317.44, or more than 8 percent, to 3563.94.
The London and French markets were also struggling to regain their footing, and failing miserably at it.
Roger Monson, chief strategist at Daiwa Europe said relief may be coming soon for world markets, but possibly not soon enough for investors.
"I think one of the keys will be, perhaps, an exhaustion of those people who decided to lock in their profits, which have been substantial this year, or at least were until a couple of days ago, and to look towards fundamentals," said Monson.
"When will that transition occur? It will be very hard to predict. It might be by the end of the day. It might be several days away."
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