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The Breakfast Briefing: US Futures Point Higher Global Stocks Waver, Awaiting Trade Developments
FYI: U.S. stock index futures were higher Monday morning.
At around 01:20 a.m. ET, Dow futures rose 69 points, indicating a positive open of more than 46 points. Futures on the S&P and Nasdaq were also pointing to a higher open.
Market players remain focused on U.S.-China trade talks. Chinese Vice Premier Liu He spoke with the U.S. Treasury Secretary and Trade Representative over the phone on Saturday. According to the Chinese Ministry of Commerce, both sides had “constructive” talks regarding each other’s trade concerns.
Global stocks started the week with muted gains in the absence of any further developments on U.S.-China trade negotiations.
Over in Asia, Hong Kong’s Hang Seng Index climbed 1.4% while the Shanghai Composite Index advanced 0.6%. China’s central bank on Monday lowered its regular reverse repurchase rate for the first time since October 2015 in an effort to boost market confidence and bolster economic growth.
The pan-continental Stoxx Europe 600 index was mostly flat, with the real estate and financial services sectors edging higher. Shares in Aviva fell 3.6% after the British insurer said it plans to retain its Singapore and China units, following a Bloomberg News report that a group of financial firms were trying to buy its assets in Singapore and Vietnam.
pain’s Bolsas y Mercados Espanoles rallied 36% after two rival exchange-operators said Monday they are interested in a potential acquisition of the Madrid-based company.
The pound gained 0.5% against the U.S. dollar as weekend opinion polls showed that U.K. Prime Minister Boris Johnson’s party has the highest level of support since 2017. Mr. Johnson also said that all the Conservative Party candidates have pledged to vote for his Brexit deal if he wins a majority in the Dec. 12 election. The yield on the 10-year U.K. gilt rose to 0.753%, from 0.730% Friday.
Later in the day, investors will be able to gauge U.S. home builders’ sentiment when the National Association of Home Builders releases its survey. Cleveland Federal Reserve President Loretta Mester is also scheduled to speak at the University of Maryland.
