Thursday September 13th

13-09-2018

Dow futures rise 100 points after weaker-than-expected inflation data

U.S. stock index futures rose ahead of Thursday's open as positive news on trade boosted investor sentiment around the world. Investors also digested weaker-than-forecast inflation data. Around 8:35 a.m. ET, Dow Jones Industrial Average futures were up by 101 points, indicating a gain of 103.08 points at the open. Futures on the S&P 500 and Nasdaq 100 both rose, signaling gains for their respective markets. The future of trade relations between the U.S. and China took a new turn in the last 24 hours, after news emerged that the U.S. was seeking to reignite trade discussions with China. Sources familiar with these negotiations told CNBC that the States was in the early stages of proposing a new round of trade talks with China in the near future. This comes after a week of turmoil between the two nations, which saw China looking to seek permission from the World Trade Organization to inflict sanctions upon the U.S., and President Donald Trump stating last week that he was "ready to go" on hitting China with an additional amount of tariffs. Consequently, an air of cautiousness lingers for markets around the world. Stock futures also got a boost after the U.S. government said the consumer price index — a widely followed inflation metric — rose 0.2 percent last month. Economists polled by Reuters expected a gain of 0.3 percent. Investors had grown fearful of rising inflation recently, as it could lead to tighter monetary policy. The Federal Reserve has raised rates twice this year and is forecast to hike again later this month. The dollar dropped against the euro to trade at $1.166 per euro, down 0.3 percent. Asia markets were largely positive on Thursday, on the back of news that the U.S. was attempting to restart trade negotiations with China. The Nikkei 225 saw a gain of 0.96 percent to end the trading day at 22,821.32, with the moves coming after Japan saw an 11 percent increase in core machinery orders for the month of July, largely rebounding from a decline in the prior month. South Korea's Kospi also climbed by 0.14 percent to close at 2,286.23. Greater China markets fell from their earlier highs but were broadly positive, as Hong Kong's Hang Seng index surged by 2.54 percent to close at 27,014.49. Over on the mainland, the Shanghai composite was higher by 1.15 percent to close around 2,686.58 while the Shenzhen composite returned to positive territory, ending the trading day higher by 0.71 percent at approximately 1,413.57. Oil prices fell on Thursday, slipping back from four-month highs as investors focused on the risk that emerging market crises and trade disputes could dent demand even as supply tightens. Benchmark Brent crude oil was down 53 cents a barrel at $79.21. U.S. light crude fell $1.15 to a low of $69.22 a barrel and was last at $69.47, down 90 cents. Gold prices on Thursday held steady near a more than one-week high hit in the previous session, amid hopes for a new round of U.S.-China trade talks, but a firmer dollar kept gains in check. Spot gold was little changed at $1,205.78 an ounce at 0758 GMT, after hitting its highest since Aug. 31 at $1,208.48 on Wednesday. The bullion gained 0.7 percent in the previous session, in its biggest single-day rise since Aug. 24.