US stock futures rise after Biden hints Chinese tariffs could be reviewed

0

U.S. stock index futures pointed to a firmer start for Wall Street on Monday, with some attributing the move to President Joe Biden’s comments on a Chinese tariff review.

How are stock index futures traded?
  • S&P 500 ES00 futures contracts,
    +0.78%
    rose 23 points, or 0.6%, to 3,923

  • Futures contracts Dow Jones Industrial Average YM00,
    +0.75%
    climbed 168 points, or 0.5%, to 31,379

  • Nasdaq-100 COMP futures contract,
    -0.30%
    rose 67 points, or 0.5%, to 11,908

U.S. stocks closed weakly on Friday, with the S&P 500 SPX Index,
+0.01%
making a gain after briefly trading in bearish territory earlier in the session.

The Dow Jones Industrial Average DJIA,
+0.03%
had its eighth consecutive weekly decline, marking its longest losing streak since April 1932, according to Dow Jones Market Data. The S&P 500 and the Nasdaq Composite COMP,
-0.30%
each suffered seven straight weekly losses, their longest losing streak since March 2001.

What drives the markets?

Stock futures have risen since late Sunday, albeit from earlier highs.

Investors looked set to buy a market battered by weeks of selling. This is despite reports of an increase in COVID cases in Beijing. where officials have extended an order for students and workers to stay at home and will carry out more mass testing in the country’s second-largest city.

China CSI 300 000300,
-0.58%
fell 0.5% and the Hong Kong Hang Seng HSI Index,
-1.19%
down 1.2%.

Analysts attributed the gains in stock index futures to comments by President Joe Biden, who said tariffs imposed by China under the Trump administration were under review and would be discussed with Treasury Secretary Janet Yellen upon returning to the United States, according to Bloomberg News.

Biden also said the United States would defend Taiwan from any aggression from China.

Lily: In Tokyo, Biden set to launch new Indo-Pacific trade pact to replace TPP

“U.S. noise in Asia, particularly tariff comments, may have sparked fleeting optimism in the market, but it will take more than that to reset the bear market, even if the S&P 500 is now trading below its average PE over 10 years. [price earnings] for the first time since March 2020 and cash levels are extremely high,” Neil Wilson, chief market analyst for Markets.com, said in a note to clients.

Lily: Buy the drop or sell the “rip”?

Risk appetite weighed on the dollar. The ICE Dollar DXY Index,
-0.95%,
which measures the greenback against a basket of major currencies, fell 0.5%. Oil price CL00,
+1.00%
were slightly higher. GC00 gold price,
+1.04%
rose nearly 1% as the dollar retreated.

There is no U.S. economic data on the calendar for Monday, but investors will keep an eye out for the World Economic Forum in Davos, Switzerland, which is back after a two-year absence.

Lily: Davos’ post-COVID return laden with climate, economic problems and a war in Europe

Share.

About Author

Comments are closed.