News

Fresh Trade Deal Hopes Drive US Stock-Futures to Record High

Equities

Major US stock-index futures logged a new record high on fresh trade deal hopes. The White House Economic Advisor Larry Kudlow stated late on Thursday that the US and China are getting close to a deal. Investors' positive sentiment was slightly hit by Trump's speech earlier this week, but Kudlow's comments supported in restoring the risk appetite. The Dow Jones Industrial Average futures rallied to a high of 27868, the S&P500 futures rose to 3110, and Nasdaq futures advanced to 8308.

USD

The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 98.11 on enhanced risk sentiment. Larry Kudlow, the White House Economic Advisor, revived investors' risk appetite as he indicated that the world's largest economies are close to reaching a trade deal. His comments generated a fresh bid for commodity currencies. On the other hand, the Federal Reserve Chairman Jerome Powell reiterated that the economy and monetary policy are in a good place. The US 10-year yields held a one-week low of 1.80%, while the EURUSD and GBPUSD edged higher to $1.1030 and $1.2888, respectively.

Metals

Gold prices erased partial gains as investors favored riskier assets on fresh trade deal hopes. The price of a gold ounce dropped to $1463 after testing a one-week high of $1474, the price of a silver ounce fell to $16.80, while palladium raced higher towards $1748.

Oil

Oil prices held the consolidation zone despite fresh movers. The US Energy Information Administration reported a buildup of 2.219 million barrels in US crude oil inventories last week, while Larry Kudlow indicated that a US-Sino trade deal is close. Both benchmarks failed to break above their recent upside resistance and drifted lower. The West Texas Intermediate crude futures dropped to $56.60, and Brent futures declined to $62.13.

Major Economic Events

GMT Country Event Expectation Previous

10:00

EU

CPI (YoY) (Oct)

0.7%

0.7%

13:30

US

Core Retail Sales (MoM) (Oct)

0.4%

-0.1%

14:15

US

Industrial Production (MoM) (Oct)

-0.4%

-0.4%

15:00

US

Business Inventories (MoM) (Sep)

0.1%

0.0%

 

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