Daily Outlook


US stock futures point to new highs

US stock futures point to new highs

U.S. stock futures indicated major indexes could be headed for fresh highs on Wednesday, after President Donald Trump said he may let a China trade-deal deadline slide if the two sides were making enough progress. Dow Jones Industrial Average futures rose 115 points, or 0.5%, to 25,521, while S&P 500 futures rose 10.95 points, or 0.5%, to 2,755.75. Nasdaq-100 futures climbed 41.75 points, or 0.6%, to 7,060.50.

Major indexes closed 2019 highs on Tuesday, with the Dow Jones Industrial Average climbing 372.65 points, or 1.5%, to 25,425.76, while the S&P 500 rose 1.3% to 2,744.73, finishing above its 200-day moving average for the first time in 46 days. That marked the S&P’s longest sojourn under the key trend line since March 2016, according to the Dow Jones Market Data Group. The Nasdaq Composite Index advanced 1.5% to 7,414.62. Providing fresh optimism for investors, President Trump said Tuesday that he would allow for flexibility on a the timeline for a deal with China if an agreement looks close. The White House had previously referred to March 2 as a “hard deadline” for an agreement. Meanwhile, Chinese President Xi Jinping is expected to meet key members of the U.S. delegation on Friday, sources told the South China Morning Post.

A third day of bilateral trade negotiations were under way in Beijing, with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer expected Thursday for more high-level discussions. The White House had previously referred to a “hard deadline” for a deal as 12:01 a.m. Eastern time March 2 deadline. Trade-deal optimism and a strong session for Wall Street on Tuesday inspired gains across global markets. In Asia, the Nikkei 225 index jumped 1.3% and the Shanghai Composite rose nearly 2%. The Stoxx Europe 600 was poised for gains as European stock futures also climbed. Crude prices climbed over 1% after Saudi Arabia’s Energy Minister Khalid al-Falih told the Financial Times in an interview that the country would further reduce its oil production, to near 9.8 billion barrels a day in March. Gold rose, while the U.S. dollar slipped against its peers.

U.S. stock futures point to fresh highs for Wall Street on trade-deal optimism, MarketWatch, Feb 13

Source: FxPro

Article Rating
Back