News

US Stock-Futures Extend Gains on Trade Optimism

Equities

Major US stock index futures edged higher amid ongoing optimism over trade between China and the United States. The recently reached US-Sino trade truce reduced the downside risks to the US stocks. The United States declared on Monday evening that there are plans to extend tariff exclusions on $34 billion worth of Chinese imports. Wall street cheered the headline with the S&P500 futures climbing to a record high of 3041, the Nasdaq futures soaring to a record high of 8127, while the Dow Jones Industrial Average futures rose to a six-week high of 27120.

USD

The dollar index, which measures the greenback against a basket of major currencies, hovered near 97.80 as market participants await the Fed's meeting. The Federal Open Market Committee kicks-off a two-day meeting to decide on the monetary policy. The CME Fed Watch tool is showing a probability of 95.1% that the meeting will result in an interest rate cut of 25 basis points. The US 10-year yields currently sit at 1.84%, the USDJPY fell from 109, and the EURUSD dropped to $1.1085.

Metals

Gold prices drifted lower on enhanced investors' risk appetite. The recent developments over trade between China and the United States supported the flow to riskier assets. The price of a gold ounce plunged to $1490, the price of a silver ounce fell to $17.70, while palladium soared to a fresh record high of $1809.

Oil

Oil prices edged lower as global economic concerns outweigh trade optimism. The weakening economic activity is lessening the demand for oil. OPEC+ could move in December meeting to extend production cut or reduce it further. The West Texas Intermediate crude futures dropped to 55.23, and the Brent futures declined to $61.08.

Major Economic Events

GMT Country Event Expectation Previous

9:50

EU

German Buba President Weidmann Speaks 

 

 

14:00

US

CB Consumer Confidence (Oct)

128.0

125.1

14:00

US

Pending Home Sales (MoM) (Sep)

0.9%

1.6%

20:30

US

API Weekly Crude Oil Stock

 

4.450


Disclaimer
 

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