US Market Pre-Open: Nasdaq Futures at All-Time High After Trade Deal
Nasdaq and stocks futures in Wall Street are firmer in the U.S. premarket as investors cheered the Phase One deal between U.S. and China. That means the cancellation of new tariffs on Chinese imports and more U.S. agricultural purchases from China. UK politics looks also more stable after the emphatic win by Boris Johnson.
Now that two main risks to global growth are on the side investors can turn their attention to fundamentals. Chinese robust economic data also boosted investors sentiment. Retail sales increased 8% year-over-year in November above a 7.2% increase in the last month and beating forecasts of 7.6% growth. The Chinese Industrial output rose 6.2% on a yearly basis compared to 5% growth in October.
The U.S. NY Empire State Manufacturing Index came in at 3.5, below forecasts of 4 in December. The Dow Jones futures are 0.21% higher at 28,223, the S&P 500 futures trading 0.46% higher at 3,189, while the Nasdaq futures add 0.55% at 8,568. U.S. markets hit an all-time high on Friday.
FTSE 100 Outperforms
European equities are also trading higher as the UK election results clear the UK politics while ECB kept rates unchanged the previous week. European investors ignored the disappointing PMI’s from Europe that reminds that the manufacturing sector is still in recession. The German PMI Composite registered at 49.4 below expectations of 49.9 in December. The Services PMI came in at 52 in line with expectations while the Manufacturing PMI came in at 43.4, below market consensus of 44.5.
The CAC 40 is 1.07% higher at 5,982, the DAX index is 0.75% higher at 13,382, while the FTSE 100 in London outperforms adding 2.26% at 7,522 as the GBPUSD trades at 1.3380.
Asian equities on the other hand ended mixed. The Nikkei finished 0.29% lower at 23,952; the Hang Seng finished 0.65% lower at 27,508, the Singapore Straits Times Index ended 0.25% lower at 3,206.
In commodities, the platinum price is in positive momentum with resistance at $950. The gold prices trade higher on US-China trade deal. Crude oil prices trade higher on US-China trade deal and OPEC+ production cuts.
In forex markets, the USDTRY bulls return after the CBRT interest rate cut. The pound to dollar exchange rate trades 0.29% higher at 1.3367. EURUSD trades 0.22% higher at 1.1142, while AUDUSD retreats from 19-week highs.