News

US Stock-Index Futures Rally on US-China Trade Optimism

Equities

Major US stock-index futures edged higher during the Asian session following reports that the United States and China are close to sealing a trade agreement later this month. The optimism of reaching a deal was able to support the markets lately and major indices traded at the highest levels since November. The Dow Jones Industrial Average futures rose to a high of 26171, the S&P500 futures climbed to a high of 2819, and the Nasdaq futures advanced to a high of 7206.

USD

The dollar index which measures the greenback against a basket of major currencies rose to a one-week high of 96.54. Since the release of the preliminary figures of the fourth quarter GDP, the dollar is strengthening against peers. The US-10 year yields jumped to a five-week high of 2.773%. The USDJPY soared to a ten-week high of 112.07, and the EURUSD tumbled to a low of $1.1345.

CAD

The Canadian dollar weakened against rivals on Friday following soft GDP data. The figures showed that the Canadian economy grew at a pace of 0.1%, the slowest in more than two years. Moreover, the weak manufacturing data from the United States weighed on oil prices which also affected the loonie negatively. The USDCAD rose to a two-week high of 1.3306, and the EURCAD climbed to a three-week high of 1.5119.

Metals

Metals prices plunged on Friday as the dollar soared along with US Treasury yields. The gold ounce tumbled to a five-week low of $1289, and the silver ounce traded at a fresh 2019 low of $15.14. Meanwhile, palladium continued to hover near $1550.

Oil

Oil prices fell sharply following weak manufacturing data from the United States. The data showed that the manufacturing activity expanded at its slowest pace in more than two years. The West Texas Intermediate crude futures dropped to a low of $55.55, and the Brent futures declined to a low of $64.56.

Major Economic Events

GMT Country Event Expectation Previous
9:30 UK Construction PMI (Feb) 50.5 50.6
10:00 EU PPI (YoY) (Jan) 2.9% 3.0%

 

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