US Stock Futures Edge Higher Following Trump's Comments


Major US Indices rallied higher during the Asian session on optimism over the coming trade talks between China and the United States. China vice Premier Lie He, and US Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin will meet this week. Stocks were hit late last week following the comments of the White House economic advisor Larry Kudlow that a trade deal is still far away. However, yesterday President Trump said that there are some good news over border deal, and will make great deals over trade. The Dow Jones Industrial Average futures rose to a high of 25188, the S&P500 futures climbed to a high of 2725, and Nasdaq futures jumped to a high of 6973.


The dollar index which measures the greenback against a basket of major currencies advanced to 97.12, the highest since December 26. The trade friction between China and the United States, the weak economic data from the Eurozone, and Brexit uncertainty are providing support for the dollar. The USDJPY climbed to a six-week high of 110.62, and the EURUSD dropped to a low of $1.1267, the lowest since late November.


The British Pound fell against peers following soft economic data. The preliminary fourth-quarter GDP data showed that the British economy grew by 0.2% versus an expectation of 0.3%, the December Industrial Production dropped by 0.5%, and the December Manufacturing Production fell declined by 0.7%. Moreover, Brexit uncertainty is weighing heavily on economic activity. The GBPUSD fell to a low of $1.2844, and the GBPAUD tumbled to a one-week low of 1.8153.


Gold prices edged higher after drawing buyers' interest near the $1300 psychological level. The gold ounce reversed losses and climbed to a high of $1314, the silver ounce held steady near $14.75, and Palladium hovered near $1400.


Oil prices traded higher during the Asian session supported by the improved risk sentiment following Trump's comments. If the United States and China were able to strike a trade deal, it will provide a boost to the global economy and probably raise the oil demand. The West Texas Intermediate crude futures rose to a high of $52.89, and Brent futures surged to $62.08. Market participants await the weekly crude oil stock by the American Petroleum Institute later today.

Major Economic Events

GMT Country Event Expectation Previous
13:00 UK BoE Gov Carney Speaks    
15:00 US JOLTs Job Openings (Dec) 6.900 6.888
17:45 US Fed Chair Powell Speaks    


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