US Indices Falter Ahead of Trump’s Presser on China

US Indices Falter Ahead of Trump’s Presser on China


Major US stock index futures retreated from a multi-month high ahead of Trump's press conference on China. Market participants were optimistic about the reopening of the economy, and stocks were edging higher. However, the US-China tensions continued to cap rally, and Trump's announcement that he would hold a press conference on China without giving any further details sent markets tumbling. The Dow Jones Industrial Average futures dropped to 25207, the S&P500 futures declined to 3010, and Nasdaq eased to 9380.


The dollar index, which measures the greenback against a basket of major currencies, extended losses to a two-month low of 98.18. Market participants favored other currencies as the sluggish US data suggested further fiscal and monetary stimulus. The second reading of the first-quarter GDP showed that the economy shrank by 5 percent. More economic data will be out today, that would give us a hint on the performance of the beginning of the second quarter, among them personal spending. The EURUSD soared to a two-month high of $1.1114, the GBPUSD recovered to $1.2357, and the AUDUSD rallied higher to $0.6665.


Gold prices held steady awaiting Trump's speech on China, which could spur the demand for safety. The price of a gold ounce held steady above $1720, the price of a silver ounce hovered near $17.40, while palladium futures declined to $1860.


Oil prices continued to trade near their highest level since early March awaiting fresh fundamental drivers. Market participants are awaiting fresh clarity on Russia's decision on extending cuts, and the developments between China and the United States, which could worsen the global economic outlook. On the other hand, the US Energy Information Administration reported a significant rise of 7.928 million barrels in US weekly crude inventories, raising concerns over the recovery of demand. The West Texas Intermediate crude July delivery dipped to $32.54, and Brent blend August delivery held steady above $35.

Major Economic Events

GMT Country Event Expectation Previous



 CPI (YoY) (May) 





Core PCE Price Index (MoM) (Apr)





 Personal Spending (MoM) (Apr)





 GDP (MoM) (Mar)





 Chicago PMI (May)





Fed Chair Powell Speaks 





President Trump Speaks




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