US Stock-Futures Extend Gains on Trade Optimism

US Stock-Futures Extend Gains on Trade Optimism


Major US stock index futures edged higher amid ongoing optimism over trade between China and the United States. The recently reached US-Sino trade truce reduced the downside risks to the US stocks. The United States declared on Monday evening that there are plans to extend tariff exclusions on $34 billion worth of Chinese imports. Wall street cheered the headline with the S&P500 futures climbing to a record high of 3041, the Nasdaq futures soaring to a record high of 8127, while the Dow Jones Industrial Average futures rose to a six-week high of 27120.


The dollar index, which measures the greenback against a basket of major currencies, hovered near 97.80 as market participants await the Fed's meeting. The Federal Open Market Committee kicks-off a two-day meeting to decide on the monetary policy. The CME Fed Watch tool is showing a probability of 95.1% that the meeting will result in an interest rate cut of 25 basis points. The US 10-year yields currently sit at 1.84%, the USDJPY fell from 109, and the EURUSD dropped to $1.1085.


Gold prices drifted lower on enhanced investors' risk appetite. The recent developments over trade between China and the United States supported the flow to riskier assets. The price of a gold ounce plunged to $1490, the price of a silver ounce fell to $17.70, while palladium soared to a fresh record high of $1809.


Oil prices edged lower as global economic concerns outweigh trade optimism. The weakening economic activity is lessening the demand for oil. OPEC+ could move in December meeting to extend production cut or reduce it further. The West Texas Intermediate crude futures dropped to 55.23, and the Brent futures declined to $61.08.

Major Economic Events

GMT Country Event Expectation Previous



German Buba President Weidmann Speaks 





CB Consumer Confidence (Oct)





Pending Home Sales (MoM) (Sep)





API Weekly Crude Oil Stock




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