News

US Stock Futures Extend Rally on Trump’s Comment

Equities

Major US stock-index futures advanced to another record high supported by Trump's optimism over trade. Yesterday, President Donald Trump indicated that China and the United States are in the final throes on reaching a trade deal. Also, he stated that he wants to see democracy in Hong Kong. The Dow Jones Industrial Average futures rose to a high of 28158, the S&P500 futures soared to a record high of 3147, and the NASDAQ futures climbed to 8420.

USD

The dollar index, which measures the greenback against a basket of major currencies, surged to a two-week high of 98.40 ahead of numerous data releases. Market participants are looking forward to the second reading of the 3rd quarter GDP, PCE price index, durable goods, pending home sales, and the beige book. A better-than-expected economic data will strengthen the outlook and diminish the chances of further monetary policy easing, which would be dollar positive. Currently, the US 10-year yields sit at 1.74%, the EURUSD dropped to $1.1002, and the GBPUSD declined to $1.2827.

Metals

Gold prices erased partial gains on Trump's optimism over trade. The price of a gold ounce rose to $1463, profiting from a slight miss in CB Consumer Confidence. However, Trump announced that China and the US are close to reaching a trade deal, supporting the flow to riskier assets again and driving the gold price to $1457. The price of a silver ounce held steady near $17, while palladium hovered above $1800.

Oil

Oil prices inched higher on trade optimism. Market participants are assuming that the world's largest economies would strike a trade deal, and put an end to their trade disputes, which would boost oil demand levels. On the other hand, the American Petroleum Institute reported a rise in US weekly crude oil stock by 3.639 million barrels. The US Energy Information Administration will report the official figures later on the day. The West Texas Intermediate crude futures rose to $58.38, and the Brent futures climbed to a two-month high of $64.30.

Major Economic Events

GMT Country Event Expectation Previous

13:30

US

Core Durable Goods Orders (MoM) (Oct)

0.2%

-0.4%

13:30

US

Core PCE Price Index (MoM) (Oct)

0.2%

0.0%

13:30

US

GDP (QoQ) (Q3) 

1.9%

2.0%

15:00

US

Pending Home Sales (MoM) (Oct)

0.2%

1.5%

15:30

US

Crude Oil Inventories

-0.418

1.379

19:00

US

Beige Book

 

 

22:00

UK

YouGov MRP Poll

 

 


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