U.S. stock index futures were slightly higher Monday as Wall Street looked for the market’s rally to record highs to resume amid increasing expectations that China and the U.S. will reach a so-called phase one trade deal.
Around 7:15 a.m. ET, Dow Jones Industrial Average futures were up 68 points, indicating a gain of 79 points at the open. S&P 500 and Nasdaq 100 futures also pointed to solid opening gains.
China will raise penalties for violating intellectual property rights as both countries, according to Bloomberg News. The report added China will think about lowering punishment thresholds for IP theft.
Meanwhile, U.S. national security advisor Robert O’Brien said on Saturday that a phase one trade deal with China could happen before the end of the year. He also cautioned, however, that President Donald Trump would not ignore ongoing protests in Hong Kong.
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Pro-democracy candidates in the embattled Asia city romped to a symbolic majority in district council elections over the weekend, after residents turned out to vote en masse following six months of anti-government protests. Hong Kong’s Hang Seng index surged 1.5% to close at 26,993.04 after pro-democracy candidates surged to a landslide victory following a record voter turnout.
The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
But recent optimism around trade lifted equities to record highs. The Dow and S&P 500 are up 3.4% and 2.9%, respectively, over the past month. The Nasdaq Composite is up 3.4% over that time as well.
The market’s rally took a pause last week, with the S&P 500 snapping a six-week winning streak. The Dow fell for the first week in five while the Nasdaq ended a seven-week run.
On the data front, Dallas Fed manufacturing figures for November will be released at around 10:30 a.m. ET.
Source: cnbc.com | Original Link