US Stock Futures Advance on Trade Talks and Dovish Fed
US Stock Futures Advance on Trade Talks and Dovish Fed
Equities
Major US indices finished higher for the fifth consecutive day, supported by the three days trade talks between China and the United States and a "patient" Federal Reserve. Investors were optimistic regarding the last round of trade talks between the two largest economies in the world. On the other hand, the latest FOMC meeting minutes showed that the Fed would be more cautious and patient in taking further tightening measures. The Dow Jones Industrial Average futures rose 0.6% to 23964, the S&P500 futures climbed 0.5% to 2594, and the Nasdaq futures added 0.5% to 6627.
USD
The dollar index which measures the greenback against a basket of major currencies dropped erasing partial gains after Powell's "Patient" comments. During the Asian session, DXY tumbled to a low of 95.32. The latest comments of Chairman Powell and the FOMC meeting minutes raised the chances that the Federal Reserve will be more patient, taking into consideration the rising market volatility and growth concerns. The USDCAD dropped to 1.3195, and the EURUSD rose to a high of $1.1532. The December inflation data will be released later today.
Metals
Metal prices continued higher as the dollar lost ground. The gold ounce climbed to a high of $1295, the silver ounce traded at 15.70, and palladium hovered near $1330.
Oil
Oil prices edged higher looking for strong weekly gains on trade hopes and OPEC-led supply cuts. The West Texas Intermediate crude futures rose to a high of $53.00, and Brent futures climbed to $62.06. The energy services firm Baker Hughes will report the US oil rig count later today.
Major Economic Events
| GMT | Country | Event | Expectation | Previous |
|---|---|---|---|---|
| 9:30 | UK | Manufacturing Production (MoM) (Nov) | 0.4% | -0.9% |
| 9:30 | UK | Industrial Production (MoM) (Nov) | 0.3% | -0.6% |
| 13:30 | US | Core CPI (MoM) (Dec) | 0.2% | 0.2% |
| 13:30 | US | CPI (MoM) (Dec) | -0.1% | 0.0% |
| 18:00 | US | U.S. Baker Hughes Oil Rig Count | 877 |
Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
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