American stocks futures climb on reports trade deal will soon be completed
US Stock futures climbed on Monday when investors cheered reports that a Chinese-US trade deal was moving closer, with the two sides in the final phase of an agreement.
How did benchmarks work?
Dow Jones Industrial Average Futures
YMH9, + 0.20%
rose 80 points, or 0.3% to 26.110, while S & P 500 futures
ESH9, + 0.19%
received 8 points, or 0.3% to 2.81[ads1]3. Nasdaq-100 futures
NQH9, + 0.35%
received 33.25 points, or 0.5% to 7.189.25.
On Friday, the S&P 500 index is
SPX, + 0.69%
rose 0.7% to 2.803.69, closed over the 2800 level for the first time since November 8. Dow industrial
DJIA, + 0.43%
closed 110.32 points, or 0.4% to 26.026.32, while Nasdaq Composite Index
COMP, + 0.83%
advanced 0.8% to 7.595.35.
Last week, S & P 500 increased 0.4% and Nasdaq increased 0.9%. The Dow, meanwhile, throw about 0.1% to get his nine-week winning knit, the longest since May 1995.
Read: Stocks can roar to start the month, but quit March with a nap, Analysts say
What drives the market?
Quote sources, a report in The Wall Street Journal said that Washington, DC and Beijing could reach a trade agreement as early as this month. Reports say that the pact will end up with most US tariffs charged against China in exchange for the latter following up its own promises to allow more US exports among other measures.
While the deal has not yet been completed and obstacles remain on both sides, a formal agreement could be reached at a summit – probably on March 27 – between President Donald Trump and Chinese President Xi Jinping, these sources said. Trade optimism has played a key role in driving gains for equities this year.
China's economy will also be in focus this week with the National People's Congress due to the kick off and officials expected to announce growth targets.
Investors were ready to overlook some mixed signs on the US economic front, with a key production gauge on Friday, marking the slowest pace of growth since the election of President Trump in November 2016. The only data on Monday's print is building money , but investors will get an important update on the labor market Friday with the February job number.
Read: All the bad news on the economy can't overshadow where the real force lies
"We have a gentleman who likes a very strong dollar at the Fed … I want a strong dollar, but I want a dollar that is great for our country, not a dollar so strong that it is prohibitive For us to be able to handle other nations, says Trump, according to reports, he also excited about media, democrats, environmentalists, and special councilor Robert Mueller Russia's probe.
What do strategies say?
"This Tomorrow's news reinforces the notion that from a short-term macroeconomic perspective, the US-China trade agreement (or not) is the only game in town, says Jeffrey Halley, senior market analyst at OANDA, in a note to clients.
"However, it is a busy week globally on the data front. We have a lot of central bank decisions starting with the Reserve Bank of Australia on Tuesday, Bank of Canada on Wednesday and the European Central Bank on Thursday," Halley said.
How were other markets trading?
Shares in Asia increased in trade cabinet, with optimism with China's Shanghai Composite Index
SHCOMP, + 1.12%
increasing 1.1% to 3.027.58, the highest level in nine months.
European shares also opened with gains, and Stoxx Europe 600
SXXP, [0.2459008] + 0.29%
increasing 0.4%.
Gold Rates
GCJ9, -0.82%
took a hit when investors sought out perceived risky assets as shares. The price of oil
CLJ9, + 0.73%
so modest gains while the US dollar
DXY, [0.2459008] + 0.21%
was modest down.
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