The Breakfast Briefing: U.S. Futures Jump On Trade-Deal Optimism

Ted

FYI: U.S. stock index futures turned sharply higher Thursday morning, after China said the world’s two largest economies had agreed to remove existing trade tariffs.

At around 04:00 a.m. ET, Dow futures rose 135 points, indicating a positive open of more than 119 points. Futures on the S&P and Nasdaq were both higher.

Gao Feng, a ministry spokesperson for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods, according to the country’s state broadcaster.

The ministry spokesperson said that both sides were closer to a so-called “phase one” trade agreement following constructive negotiations over the past two weeks.

Germany’s benchmark DAX index advanced 0.7%. Mr. Madden said some traders would have taken the progress in China-U. S. negotiations as a sign that the U.S. may not place tariffs on German autos, which would offer a respite to the nation’s hard-hit manufacturing sector.

Among European equities, the biggest gainers included ArcelorMittal, which rallied 6.3% after third-quarter earnings for the world’s largest steelmaker beat expectations. Shares in German conglomerate Siemens gained 4.5% after it released a better than expected outlook for next year. Sodexo climbed 7.6% after the French food-services and facilities company said revenue beat its fiscal 2019 target.

Later in the day, major U.S. corporations including The Wall Street Journal’s parent, News Corp. , as well as Walt Disney Co. , Keurig Dr Pepper Inc. and AmerisourceBergen Corp. will report quarterly earnings.

Over in the U.K., investors will get an assessment of the health of the British economy from the Bank of England when it provides updated forecasts for growth. The bank’s monetary policy committee is widely expected to leave interest rates unchanged as the U.K. gears up for a general election and its exit from the European Union in the new year
Regards,
Ted

WSJ:

MarketWatch:
https://www.marketwatch.com/story/stock-futures-climb-after-report-china-us-agree-to-cancel-tariffs-in-stages-2019-11-07/print

Bloomberg:
https://www.bloomberg.com/news/articles/2019-11-06/asia-stocks-look-mixed-on-trade-signing-roadblock-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-roku-stock-carvana-stock-qualcomm-stock-dexcom-stock/

CNBC::
https://www.cnbc.com/2019/11/07/stock-markets-wall-street-in-focus-amid-us-china-trade-deal-hopes.html

Reuters:
https://uk.reuters.com/article/uk-usa-china-trade/china-says-it-has-agreed-with-u-s-to-cancel-tariffs-in-phases-idUKKBN1XH0TM

U.K.
https://uk.reuters.com/article/uk-britain-stocks/uk-shares-cheer-upbeat-earnings-updates-trade-signals-idUKKBN1XH10T

Europe:
https://www.reuters.com/article/us-europe-stocks/trade-optimism-rosy-earnings-send-european-shares-to-four-year-peak-idUSKBN1XH0ZK

Asia:
https://www.marketwatch.com/story/asian-markets-slip-on-report-of-possible-trade-deal-delay-2019-11-06/print

Bonds:
https://www.cnbc.com/2019/11/07/us-treasury-yields-amid-focus-on-us-china-trade-developments.html

Currencies:
https://www.cnbc.com/2019/11/07/forex-markets-us-china-trade-bank-of-england-in-focus.html

Oil:
https://www.cnbc.com/2019/11/07/oil-markets-us-china-trade-in-focus.html

Gold:
https://www.cnbc.com/2019/11/07/gold-markets-us-china-trade-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx