Monday March 26th

26-03-2018

Dow set to rise more than 400 points at the open as fears of an impending trade war ease

U.S. stock index futures posted major gains ahead of Monday's open, bouncing back from the sharp losses seen during Friday's session. Around 8:20 a.m. ET, Dow Jones industrial average futures indicated a rise of more than 400 points at the open. The Nasdaq 100 and the S&P 500 futures also indicated a positive open for their respective markets. The moves in premarket trade come after the Financial Times reported China has offered to buy more semiconductors from the U.S. to help cut its trade surplus with the U.S. The Wall Street Journal also reported that U.S. and  Chinese officials are working to improve U.S. access to China's markets. Wall Street finished Friday's session deep in the red on Friday, with the Dow Jones industrial average dropping more than 400 points by the close — closing at its lowest level since November and finishing in correction territory, as it was 11.6 percent down from its 52-week high. Looking to Monday's session, markets overseas recovered during trade. In Asia, some indexes rose after news surfaced that the U.S. had agreed to excuse South Korea from steel levies. Meantime in Europe, stocks were slightly higher as investors tried to shake off worries surrounding a potential trade war. In Japan, the Nikkei 225 retraced losses to climb late in the trading session, closing up 148.24 points, or 0.72 percent, at 20,766.10. Across the Korean Strait, the Kospi climbed 20.32 points, or 0.84 percent, to 2,437.08. Elsewhere, Chinese mainland markets finished mixed, with the Shanghai composite down 18.83 points, or 0.6 percent, at 3,133.92 while  the Shenzhen composite rose 23.74 points, or 1.34 percent, to 1,790.35. In Hong Kong, the Hang Seng index erased losses to climb 239.48 points, or 0.79 percent, to 30,548.77. Last week, President Donald Trump signed an executive memorandumthat would inflict tariffs on Chinese imports — of up to $60 billion. China retaliated with their own set of levies, drawing up a list of 128 U.S. products that could be possible retaliation targets. On the data front, the Dallas Fed's Texas Manufacturing Outlook survey is expected to come out at 10:30 a.m. ET. Social media firms continue to be under the radar, as abuse of people's data remains a key topic of discussion. Last week, reports emerged alleging that Cambridge Analytica, an analytics company, had gathered data from 50 million Facebook profiles without the permission of its users. While Facebook have since come out to apologize and try to rectify the matter, concerns remain. Crude oil futures slipped on Monday, but losses were capped by a rebound in stock markets and escalating Saudi-Iran tensions. Global stocks came off six-week lows on optimism that the United States and China are set to begin trade talks, easing fears about a trade war between the world's two largest economies. The possibility of a full-blown trade war had weighed on the energy complex on fears that it could harm oil demand. Brent crude futures were down 10 cents at $70.35 a barrel at 1000 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 26 cents to $65.62. Gold prices steadied on Monday after inching down earlier in the session as fears of a U.S.-China trade war eased following reports of negotiations among two of the world's leading economies. Spot gold was up 0.15 percent at $1,348.45 per ounce, as of 8:10 a.m. EST. Earlier in the session, gold prices climbed as much as $1,350.76 per ounce, their highest since Feb. 19. U.S. gold futures for April delivery slipped 0.07 percent to $1,349 per ounce.