Asian equity markets started the week very much on the front foot, on yet more speculation that a China-US trade deal would soon be concluded. This in turn is proving sufficient to drive US index futures higher too, although there’s no shortage of cynicism as to whether the deal will end up being rather one sided. Given last week’s failures in Hanoi, Donald Trump is seen as being under a weight of pressure to get a deal sorted with Beijing so the overhang is off the agenda as he attempts to run again for President in 2020. The risk however is that the majority of any benefit is weighted in China’s favour, simply to ensure a deal is done, something which will also hopefully help stem the decline in global trade, too.
Donald Trump’s indirect attack on Jerome Powell over the weekend also has the potential to give equities something of a boost. The US President took fire at the Fed for its ongoing campaign to manage inflation – as per its remit – and if this was to have any direction over terminating quantitative tightening then stocks would have cause to cheer. Otherwise however, US economic data is relatively thin on the ground today, so sentiment will remain key.
Ahead of the open we’re calling the DOW up 104 at 26130 and the S&P up 11 a 2815.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Investors continue to grapple with inflation concerns; Surprise API oil build comes at a critical juncture; Even the hard-to-love EUR is trading higher