Major US indices bounced off a one-week low during the Asian session following the news that China and the US will hold vice-minister level trade talks on the 7th and 8th of January. The Dow Jones Industrial Average futures rose 0.7% to 22870, the S&P500 futures climbed 0.7% to 2470, and the Nasdaq futures added 1.2% to 6243. Lately, the global stock market was under pressure on signs of a global economic slowdown which curbed investors' risk appetite.
The dollar index which measures the greenback against a basket of major currencies lost 0.5% to 96.23 on soft economic data. The December ISM manufacturing PMI dropped to 54.1 from 59.3 previous, the lowest in three years and the sharpest one-month drop since 2009. The soft economic data signals that the Fed will be forced to pause its monetary policy tightening cycle. The US 10-year yields fell to 2.541%, the lowest since mid-January 2018. Market participants await today's jobs report, mainly, the average earnings.
Metals prices edged higher as the dollar weakened along with treasury yields. The gold ounce rose to $1298, the highest in more than six months. Meanwhile, the silver ounce finished higher for the seventh consecutive day at $15.70, and palladium traded above $1270.
Oil prices surged on expectations that the OPEC+ cut agreement could lead to a stable market, and the trade talks between China and the United States would lead to a deal that will boost the global economy. The West Texas Intermediate crude futures traded near a two-week high of $47.75, and the Brent futures rose to a high of $56.66. Market participants await the crude oil inventories release later today.
Major Economic Events
|8:55||EU||German Unemployment Change (Dec)||-12||-16|
|9:30||UK||Services PMI (Dec)||50.7||50.4|
|10:00||EU||CPI (YoY) (Dec)||1.8%||1.9%|
|13:30||US||Nonfarm Payrolls (Dec)||178||155|
|13:30||US||Unemployment Rate (Dec)||3.7%||3.7%|
|13:30||CA||Employment Change (Dec)||6.8||94.1|
|13:30||CA||Unemployment Rate (Dec)||5.7%||5.6%|
|15:15||US||Fed Chair Powell Speaks|
|15:30||US||Crude Oil Inventories||-3.086||-0.046|
|18:00||US||U.S. Baker Hughes Oil Rig Count||885|
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