US stocks set for big opening drop as politics and coronavirus roil investor sentiment again

7.45am: Big drop predicted US stock futures pointed to a near 450 point opening loss for the Dow Jones Industrial Average on Monday as political worries ahead of the fast-approaching US presidential election and fears over the coronavirus (COVID-19) pandemic kept investors wary. The death of Supreme Court associate justice Ruth Bader Ginsburg may have market implications, as what is expected to be a hotly contested nomination battle for her replacement could further impact sentiment in Congress, which has yet to agree on a new stimulus package for the coronavirus crisis or government funding beyond the end of September. Edward Moya, senior market analyst, New York, OANDA commented: “Global stock markets are tumbling as coronavirus cases surge in Europe, political tensions in the US will likely derail any further fiscal support efforts, and after International Consortium of Investigative Journalists reported lenders’ delay in providing suspicious activity reports.  With little on the economic calendar, risk aversion could remain steady throughout on the session.”  He added: “Surging coronavirus cases and doubts over the next over the next round of fiscal support is triggering a wide range risk averse tone that is sending the dollar higher and sinking gold. A deteriorating global economic recovery is growing as Europeans struggle to contain the latest wave of the virus, but that should only reinforce the stimulus trade going forward.  “The US economic outlook is starting to look a lot worse as the path for a fiscal agreement seems unlikely given the Republican and Democratic battle over who will be the next Supreme Court justice,” Moya concluded. Five things to watch on Monday: Banking stock under pressure Europe’s top banks dropped on Monday, after the publication of reports alleging they kept doing business with customers they suspected of money laundering and other wrongdoing Electric truck maker Nikola Corp. dropped nearly 30% in premarket trade after founder Trevor Milton resigned as executive chairman following allegations by a short seller the company had misled investors about its technology Oracle Corp. shares were in premarket action after President Trump on Saturday said he had given his “blessing” to a proposed deal that would see the company and Walmart Inc. take over US operations of Chinese-owned app TikTok Illumina Inc. dropped in premarket trading after the gene-sequencing company confirmed a deal to buy Grail Inc. for $8 billion in cash and stock Boeing Co is nearing a decision to shift more 787 Dreamliner production to South Carolina, according to industry sources, a cost-cutting strategy accelerated by the COVID-19 pandemic