News

US Stock Futures Hover near Record High ahead of US-China Trade Deal Signing

Equities

Major US stock-index futures were mixed near-record high as market participants look forward to the signing of phase 1 trade deal between the world's largest economies. The Chinese delegation arrived in Washington to mark the first achievement of the US-Sino trade talks. However, the comments of the US Treasury Secretary Steven Mnuchin weighed on the risk appetite as he stated that tariffs on Chinese goods would remain in place until they reach a phase 2 agreement. The Dow Jones Industrial Average futures dropped to 28838, the S&P500 futures declined to 3280, and Nasdaq futures fell to 9025.

USD

The dollar index, which measures the greenback against a basket of major currencies, remained caught in a tight trading range awaiting fresh fundamental drivers. For the past couple of days, DXY found support near 97.30, and resistance near 97.60. The US economic data failed to inspire investors towards the next swing. The Consumer Price Index year-on-year came in as expected at 2.3%, while the month-on-month reading rose by 0.2%, missing estimates of 0.3%. Major currency pairs are in a cautious mode as market participants await the trade deal signing. The USDJPY dropped slightly to 109.80, the EURUSD fell to $1.1104, while the pound recovered to $1.3042 ahead of inflation figures.

Metals

Gold prices edged higher after Mnuchin's comments. The US Treasury secretary declared that tariffs on Chinese goods would remain in place until reaching a phase 2 agreement, negatively affecting investors' risk appetite. The price of a gold ounce rose to $1554, the silver ounce advanced to $17.90, while palladium soared to a fresh record high of $2215.

Oil

Oil prices drifted lower post API weekly report. The American Petroleum Institute reported a buildup of 1.1 million barrels in US weekly crude oil stock. The US Energy Information Administration will publish the official numbers later today. The West Texas Intermediate crude futures declined to $57.97, and Brent futures dropped to $64.24.

Major Economic Events

GMT Country Event Expectation Previous

9:30

UK

CPI (YoY) (Dec)

1.5%

1.5%

10:00

EU

Industrial Production (MoM) (Nov)

0.3%

-0.5%

13:30

US

PPI (MoM) (Dec)

0.2%

0.0%

15:30

US

Crude Oil Inventories

-0.474

1.164

19:00

US

Beige Book

 

 


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