B Mirror Desk : On Monday morning, Wall Street stock futures experienced an uptick following positive developments in US-China trade negotiations, while the US dollar also gained strength. The dollar index increased against major global currencies. Specifically, S&P 500 futures rose by 1.2 percent, and Nasdaq futures mirrored this increase.
Additionally, Eurostock 50 futures climbed by 0.9 percent, FTSE futures by 0.4 percent, and DAX futures by 0.7 percent. Meanwhile, trading commenced in various Asian markets, with Japan’s Nikkei Asia Index rising by 0.3 percent and South Korea’s KS11 Index by 0.4 percent. The US dollar appreciated by 0.4 percent against the yen, reaching 145.90 yen per dollar, while the euro declined by 0.2 percent against the dollar, now priced at 1.12 dollars per euro. Overall, the dollar index saw a 0.2 percent increase, reaching 100.60 points, although it fell by 0.2 percent against the yuan in the offshore market.
Stock futures represent contracts where the buyer commits to purchasing a specified number of shares at a set price on a designated date, while the seller agrees to sell those shares. Analyzing these stock futures indicates potential movements in the index during the main trading session. The optimism surrounding the US-China trade talks has sparked hope in the global market for avoiding a recession, as reflected in today’s market activity, despite the absence of specific details regarding the trade agreement.
Investors are anticipating that the White House may soon reconsider the 145 percent tariff on Chinese imports, with hopes that it could revert to the 60 percent rate initially proposed by Trump. Regardless of the circumstances, Trump remains supportive of imposing high tariffs on Chinese goods, which could impact economic growth and elevate product prices. Progress in trade discussions could help mitigate significant losses.
Trade talks between the United States and China are taking place in Geneva, Switzerland. US Treasury Secretary Scott Besant said that significant progress has been made in these talks. China also said that the two sides have reached an “important consensus.” At the same time, the two sides have agreed to establish a new economic dialogue forum.
Although China and the United States have not said anything yet about what the final tariff rate will be, they said that the two countries will make a joint announcement on the trade agreement on Monday.
Michael Brown, senior research strategist at Pepperstone, said that looking at the situation, it seems that China and the United States have created a large framework; a framework within which there is an opportunity for further talks between the two countries. He also said that nothing bad will come of the ongoing talks; again, it is true that the reality of a specific agreement has not yet been created. The point is, no one knows yet whether tariffs are likely to be suspended, reduced or lifted from these talks.
On the other hand, there has been a ceasefire between India and Pakistan. Along with this, the possibility of a ceasefire between Ukraine and Russia has also arisen. Ukrainian President Volodymyr Zelensky said that he is ready to hold talks with Russian President Vladimir Putin in Turkey next Thursday. The news said that the impact of these good news in geopolitics has also been felt in the market.
Today, the global gold market has seen a slight decline in prices, attributed to the strengthening of the dollar and stock markets. Gold prices dropped by 1.7%, now standing at $3,268 per ounce, following an all-time high of $3,500 per ounce in April. In contrast, optimism surrounding trade negotiations has positively influenced the oil market, with Brent crude oil prices increasing by 23 cents to $64.14 per barrel, and WTI crude prices rising by 25 cents to $61.27 per barrel.
