Before the bell: What you need to know before the US market open

Billy Bambrough
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Germany's 10-year bond yield has turned negative in Frankfurt for the first time in history (Source: Getty)

Brexit fears are dragging down markets and Germany's 10-year bond yield has turned negative.

Here's what you need to know before the market open at 14:30 London time.

US futures are pointing down again today, suggesting the bad start to the week is going to continue. The S&P is off by 0.22 per cent. The Nasdaq is 0.26 per cent lower, while the Dow is 0.17 per cent down. The US 10-year yield is down three basis points at 1.58 per cent.

Read more: The great sterling stutter speeds up after Brexit gains momentum

A poor start to the day in Europe so far follows most Asian markets ending the day with losses.

Brexit blunders...

The pound is lower by 0.7 per cent at 1.4168 after polls and bookies continue to show European Union membership referendum vote next week will be a close call.

Today the most popular newspaper in the country, The Sun, came out in favour of Brexit.

Negative noise...

Germany's 10-year bond yield has turned negative. It has dropped below zero for the first time in history – remember yields fall when prices rise.

The drop has been put down to a slowing global economy – with China's latest economic numbers yesterday disappointing markets – and uncertainty over the future of the European Union due to the migration crisis and the UK's coming referendum vote weighing heavy.

Stocks to watch

Apple remains in the limelight as its Worldwide Developers Conference revealed that Apple Pay and Siri services are now available for desktops.

There were also a few minor upgrades to the company's mobile iOS system but nothing that took the market by storm.

Baidu, China's online search giant, have dropped in the pre-market after the company following a warning revenue this quarter will miss forecasts.

Read more: Apple had plenty of "I'd definitely use that" moments at WWDC

The company is embroiled in controversy around its advertising practices for medical services – which it has said it's trying to fix.

Companies reporting

Company numbers remain thin on the ground today – though there was a wealth of results out of the UK including fashion label Ted Baker, Equipment hire company Ashtead, and bus and rail operator First Group.

Economic news

The Federal Reserve begins its two-day meeting today, with an announcement on monetary policy and interest rates expected tomorrow.

Before that we'll shortly get the latest US retail sales data for the month of May. In April sales increased 1.3 per cent compared March on the back of higher car sales, online retail, and fuel.

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