Manufacturing activity measured by the Federal Reserve Bank of New York's general economic index fell to 4.1 in September, down from 7.1 in August. That was the lowest number since July of last year, deep in the heart of the recession. Although the number is still positive – indicating an expansion of activity – the downward trend was enough to spook equities investors and put pressure on stock index futures.
At 9:33 a.m. EST, Dow Jones Industrial Average Index futures had slipped 48 points to 10,449, while Nasdaq 100 index futures lost 2.5 points to 1,920.
S&P 500 futures dropped 5.3 points to 1,110.50, while in Europe, the DJ Euro Stoxx 50 index futures slid 24 points to 2,785.
As often happens when the U.S. shows signs of cutting back on its manufacturing, equity index futures in commodity producing nations took a beating as well. Mexican Bolsa index futures slid 209 points to 33,080, while Brazilian Bovespa futures dropped 469 points to 67,735 at 9:28 a.m. EST.
Futures brokers and traders often perceive emerging markets like Brazil to be more inherently risky, and the dependence of such nations on exporting goods like soy, steel and oil to developed economies makes them vulnerable to manufacturing cutbacks.
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