U.S. stock futures were higher on the final trading day of the week, as market participants closely monitor trade talks between the world’s two largest economies.
At around 7 a.m. ET, Dow Jones Industrial Average futures rose 122 points, indicating a gain of more than 100 points at he open. S&P 500 and Nasdaq 100 futures were also higher.
Optimism has risen over the chances of both countries securing a deal to end their protracted trade war, but some experts say the most difficult part is yet to come as high level talks continue into Friday. President Donald Trump is scheduled to meet with Chinese Vice Premier Liu He later on Friday.
“There’s obviously an incentive for both sides to reach a deal,” James Athey, senior investment manager at Aberdeen Standard Investments, told CNBC “Squawk Box Europe” on Friday.
“The problem is that you’re now getting to the more difficult part of the negotiation, which is things like the IP (intellectual property) problem.”
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One ofTrump’s biggest contentions with Beijing is the claim that the country has stolen intellectual property and trade secrets from American companies. Both nations are a week away from a March 1 deadline to secure a trade deal, however speculation has risen there may be an extension to that target.
On Thursday, stocks fell as traders reacted to weak economic data, fueling fears of a potential slowdown in the world’s largest economy.
December durable goods orders rose 1.2 percent, the Commerce Department said. The department also said core capital goods orders fell 0.7 percent while economists polled by Reuters expected a gain of 0.2 percent.
The Philadelphia Federal Reserve business index fell to negative 4.1 in February — its lowest level since May 2016 — from 17 in January. Economists polled by Dow Jones expected a print of 14.
Elsewhere, a flurry of speeches from Fed policymakers are due throughout the day, with New York Fed President John Williams, San Francisco Fed President Mary Daly, Philadelphia Fed Chairman Patrick Harker and St. Louis Fed President James Bullard expected to speak on the U.S. economy and monetary policy at separate events.
Source: cnbc.com | Original Link