US Pre Market Open: Trade hopes keep index futures buoyant

Market Analysis /
04 Mar 2019

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.

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