US Pre Market Open: Trade talks with China in focus
|US futures may have faced something of a shake down before the opening bell yesterday, but worries over that looming trade war with China seem to have been rather misplaced, leaving benchmark indices to rally hard in the early part of Tuesday’s session. Tech and telecoms stocks were the biggest winners, whilst the energy sector is also finding favour off the back of higher oil prices, although there does seem to be a clear understanding that the mood could quickly deteriorate depending on just how those trade talks progress.
We’ve got a raft of low level US economic data due before the opening bell so this is unlikely to provide much direction, but the weekly oil inventory stats could deliver some direction for crude oil. Gains in the underlying commodity have been translating through to equity prices and in turn have been one more factor lending support to indices. A notable build in reserves today could translate into some weakness for the DOW.
Ahead of the open we’re calling the DOW up 62 at 26033 and the S&P up 4 at 2892.
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