News

Stock Index Futures Rebound on Trump's Comments

Equities       

Major US stock-index futures recovered losses following Trump's latest announcement. He indicated that following weekend calls, China wants to negotiate, and he thinks that a deal could be reached. Trump's comments boosted investors' demand for risky assets. The Dow Jones Industrial Average futures rose to 25857, the S&P500 futures surged to 2876, and the Nasdaq futures recovered to 7595.

USD

The dollar index which measures the greenback against a basket of major currencies erased partial losses and edged higher to 97.85 following Trump's comments. The index incurred heavy losses on Friday, as the latest round in trade disputes escalation raised investors’ concerns over the global economic outlook. They believe that the ongoing uncertainty and growing risks would lead to a recession forcing the Federal Reserve to ease the monetary policy aggressively. The yield curve inverted again on Friday, and this phenomenon is considered as an early warning for a possible recession. However, the latest announcement from President Trump on renewed trade talks and his expectations of striking a trade deal revived investors' hopes. The USDJPY surged to 105.95, and the EURUSD dipped to $1.1119.

Metals

Gold prices faltered at a fresh six-year high as the dollar regained strength amid renewed optimism over solving trade disputes between China and the United States. Investors rushed to gold safety on Friday following a new round of trade tariffs between the world's largest economies. The price of a gold ounce soared to a six-year high of $1556 during today's Asian. However, the gold ounce surrendered overnight gains and dropped to $1527 on Trump's comments, which sparked investors' risk appetite. The price of a silver ounce declined to $17.49 after trading near a two-year high of $17.75.

Oil

Oil prices recovered partial losses and edged higher amid renewed optimism over trade talks between China and the United States. Investors were concerned that a full-blown trade war between the world's largest economies could deteriorate the global economic outlook and hurt oil demand. However, Trump's comments eased concerns, and investors are looking forward to the new trade talks, where Trump thinks a deal could be reached. The West Texas Intermediate crude futures rose to $54.24, and Brent futures inched higher to $59.49.

Major Economic Events

GMT Country Event Expectation Previous

8:00

EU

German Ifo Business Climate Index (Aug)

95.1

95.7

12:30

US

Core Durable Goods Orders (Mom) (Jul)

175

20

Tentative

 

G7 Meetings

 

 

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