Monday September 10th

10-09-2018

US stock futures indicate an upbeat open amid US-China trade frictions

U.S. stock index futures posted solid gains ahead of Monday's open, as investors kept a close eye on trade developments. Around 7:10 a.m. ET, Dow Jones Industrial Average futures rose 90 points, indicating a gain of 115.46 points. S&P 500 and Nasdaq 100 also pointed to an upbeat start to their respective sessions. Asia markets were mostly lower Monday as trade tensions rumbled on, while stocks in Europe rose. Investors around the globe remain on tenterhooks at the start of the new week, as concerns from previous days, seep into market sentiment. Last Friday, President Donald Trump spoke to reporters on Air Force One, stating that he was "ready to go" on hitting Chinawith an additional $267 billion worth of tariffs. The U.S. administration is already looking into finalizing plans that would inflict tariffs on $200 billion worth of Chinese goods, after a public comment period expired recently. Investors will keep an eye on the U.S.' relationship with other major economies going forward. Canada and the U.S. have yet to secure a final deal that would replace the North American Free Trade Agreement (NAFTA); meantime, last Friday, Trump told journalists that the U.S. and Japan had begun talks over trade; Reuters reported. With little economic data due out on Monday, investors are likely to still be digesting last Friday's jobs numbers, which saw the economy add 201,000 jobs in the last month — a figure that beat market expectations and put investors on edge over where the U.S. central bank could be heading next. In corporate news, Sonos is due to publish its latest earnings report. Sticking with the space, investors will be keeping an eye on CBS, after news emerged that Leslie Moonves would be exiting his post as CEO following numerous allegations of sexual misconduct. CBS shares dipped slightly in the premarket. Elsewhere, this week marks the 10-year anniversary of when Lehman Brothers filed for bankruptcy — September 15, 2008 — which became one of the largest victims in what is seen today as the financial crisis of 2008. Asian markets were mixed on Monday as trade tensions between the U.S. and China remained in focus. Both the Nikkei 225 and South Korea's Kospi extended their earlier gains to close higher. The Nikkei 225 ended the day up by 0.3 percent at 22,373.09 while the Kospi saw gains of 0.31 percent at 2,288.66. The Greater China markets, however, suffered losses, with Hong Kong's Hang Seng index down 1.62 percent as of 3:29 p.m. Over on the mainland, the Shanghai composite closed lower by 1.21 percent at 2,669.49 while the Shenzhen compositefell by 1.845 percent to end at 1,406.92. Oil prices rose on Monday as U.S. drilling stalled and as investors anticipated lower supply once new U.S. sanctions against Iran's crude exports kick in from November. Benchmark Brent crude oil was up 90 cents a barrel, or almost 1.2 percent, at $77.73 by 0820 GMT. U.S. light crude was 65 cents higher at $68.40. Gold fell for a second straight session on Monday as expectations of an interest rate hike by the U.S. Federal Reserve in September and fears of an escalation in U.S.-China trade tensions kept the dollar firm. Spot gold was down 0.2 percent at $1,193.15 as of 0655 GMT, having declined 0.4 percent in the previous session. U.S. gold futures fell 0.2 percent to $1,198.60 an ounce.