Thursday August 16th

16-08-2018

US futures bounce back after positive US-China trade developments

U.S. stock index futures ticked higher ahead of Thursday's open, as markets tried to regain some of the losses they saw in the previous session. Around 5:30 a.m. ET, Dow futures rose 108 points, indicating a positive open of 143.59 points, with the S&P 500 and Nasdaq futures also pointing to an upbeat start to the day. Markets in Europe turned positive on Thursday, helping support U.S. futures, as investors tried to shake off anxieties surrounding Turkey's economic crisis. Pressure has been ramped up in recent days, as market watchers became jittery over the Turkish president's control of the economy and U.S. leader Donald Trump saying last week that he was in support of doubling metal tariffs on the country. Investors are also likely to focus on reports of fresh talks between the U.S. and China over trade tariffs. Asian-Pacific stocks fell into the red but pared some losses on Thursday, after Beijing announced that it had accepted an invitation from the States to partake in negotiations surrounding trade later on this month; Reuters reported. While China has said that it wouldn't consent to any unilateral actions concerning trade, it did however welcome dialogue between the two nations. While political turmoil will continue to keep investors busy on Thursday, fresh data and corporate news will also be on the agenda. All the major economic data are due out at 8:30 a.m. ET, which includes jobless claims, housing starts, the Philadelphia Fed's Manufacturing Business Outlook Survey, and the business leaders survey. JD.com, Walmart, JC Penney, Madison Square Garden, Nvidia, Applied Materials and Nordstrom will all be publishing their latest financial results during the course of today. No members of the U.S. Federal Reserve are due to deliver remarks today. Asian shares slipped on Thursday, but pared some of the steeper losses seen earlier after China announced it was planning for a new round of trade talks with the United States. Beijing said it had accepted an invitation from the U.S. to take part in trade negotiations in late August. The country's vice commerce minister Wang Shouwen will lead the Chinese delegation in talks with U.S. officials. China's commerce ministry added that China was against unilateralism and protectionism, but was open to dialogue. Greater China markets narrowed losses following the news, with the Shanghai Composite closing lower by 0.63 percent at 2,705.97 after opening more than 1 percent down. Hong Kong's Hang Seng Index fell 1.09 percent at 3:21 p.m. Other major markets in the region also retraced some of their earlier losses. The Nikkei 225 took a slight dip of 0.05 percent to close at 22,192.04, having traded both in and out of positive territory during the day. The benchmark had earlier lost more than 300 points. South Korea's Kospi finished the day lower by 0.8 percent to close at 2,240.80, as its tech sector turned in a mixed performance after its U.S. counterparts came under pressure overnight. Oil prices on Thursday clawed back some of the previous day's losses after Beijing said it would send a delegation to Washington to try to resolve a trade dispute between the United States and China that has roiled global markets. Market sentiment, though, remains bearish amid the dispute and concerns of an economic slowdown in emerging markets. Brent crude oil futures were at $71.11 per barrel at 0712 GMT, up 35 cents, or 0.5 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 15 cents, or 0.2 percent, at $65.17 a barrel, held back somewhat by rising U.S. crude production and storage levels. Both benchmarks lost more than 2 percent during the previous day's trading. Gold pared heavy early losses that came in the midst of a broad commodity sell-off on Thursday, bouncing off of a 19-month low on short covering and a softer U.S. dollar following news that Beijing will hold trade talks with Washington this month. Spot gold was down 0.2 percent at $1,172.48 an ounce as of 0426 GMT, after earlier falling as much as 1.2 percent to $1,159.96, its lowest since January 2017. U.S. gold futures were down 0.5 percent at $1,179.5 an ounce.