Stock Index Futures Rebound on Trump's Comments

Stock Index Futures Rebound on Trump's Comments


Major US stock-index futures recovered losses following Trump's latest announcement. He indicated that following weekend calls, China wants to negotiate, and he thinks that a deal could be reached. Trump's comments boosted investors' demand for risky assets. The Dow Jones Industrial Average futures rose to 25857, the S&P500 futures surged to 2876, and the Nasdaq futures recovered to 7595.


The dollar index which measures the greenback against a basket of major currencies erased partial losses and edged higher to 97.85 following Trump's comments. The index incurred heavy losses on Friday, as the latest round in trade disputes escalation raised investors’ concerns over the global economic outlook. They believe that the ongoing uncertainty and growing risks would lead to a recession forcing the Federal Reserve to ease the monetary policy aggressively. The yield curve inverted again on Friday, and this phenomenon is considered as an early warning for a possible recession. However, the latest announcement from President Trump on renewed trade talks and his expectations of striking a trade deal revived investors' hopes. The USDJPY surged to 105.95, and the EURUSD dipped to $1.1119.


Gold prices faltered at a fresh six-year high as the dollar regained strength amid renewed optimism over solving trade disputes between China and the United States. Investors rushed to gold safety on Friday following a new round of trade tariffs between the world's largest economies. The price of a gold ounce soared to a six-year high of $1556 during today's Asian. However, the gold ounce surrendered overnight gains and dropped to $1527 on Trump's comments, which sparked investors' risk appetite. The price of a silver ounce declined to $17.49 after trading near a two-year high of $17.75.


Oil prices recovered partial losses and edged higher amid renewed optimism over trade talks between China and the United States. Investors were concerned that a full-blown trade war between the world's largest economies could deteriorate the global economic outlook and hurt oil demand. However, Trump's comments eased concerns, and investors are looking forward to the new trade talks, where Trump thinks a deal could be reached. The West Texas Intermediate crude futures rose to $54.24, and Brent futures inched higher to $59.49.

Major Economic Events

GMT Country Event Expectation Previous



German Ifo Business Climate Index (Aug)





Core Durable Goods Orders (Mom) (Jul)





G7 Meetings




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.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
Read More
Mail Call Chat