Tuesday July 10th


US futures edge higher as trade turmoil takes a backseat and earnings filter through

U.S. stock index futures posted mild gains ahead of Tuesday’s open, supported by positive trade overseas. Around 6:45 a.m. ET, Dow Jones Industrial Average futures rose 61 points, indicating a higher open of 69.41 points. Nasdaq 100 and the S&P 500 futures also indicated an upbeat start to their respective trading sessions. While concerns surrounding a trade spat between the U.S. and other major economies continue to weigh on sentiment, investors will likely be turning their attention to earnings and news coming from overseas. Earnings season kicked off on Tuesday with PepsiCo reporting a better-than-expected quarterly profit. The company's stock rose 1.7 percent in the premarket. Investors will be awaiting any news surrounding trade, after the U.S. and China exchanged tariffs of $34 billion on one another last Friday. As President Donald Trump heads to Europe this week, investors will be watching the interactions the U.S. incumbent has with European leaders. On Wednesday and Thursday, Trump will be in Brussels attending a NATO meeting, before he heads to the U.K. to meet with the British Prime Minister Theresa May later in the week. Overseas, investors will be keeping an eye on Brexit, after news emerged Monday that both U.K. Foreign Secretary Boris Johnson and Brexit Secretary David Davis had resigned from their posts, amplifying pressure on May and her government over future Brexit negotiations. Markets in Asia closed higher on Tuesday, taking cues from the rally in U.S. stocks as investors temporarily set aside recent trade-related concerns. In Japan, the Nikkei 225 advanced 0.66 percent, or 144.71 points, to close off its intraday high at 22,196.89 after losing around 100 points in the last minutes of trade. Elsewhere, South Korea's Kospi rose 0.37 percent to close at 2,294.16. Hong Kong's Hang Seng Index climbed 0.41 percent by 3:00 p.m. Mainland indexes dipped below the flat line but finished higher, extending the sharp gains seen on Monday. The benchmark Shanghai composite rose 0.44 percent to close at 2,827.44. Oil prices rose on Tuesday due to growing supply outages, with Norway shutting one oilfield as hundreds of workers began a strike and Libya saying its production more than halved in recent months. The disruptions add to supply worries around the world. Venezuela's production has collapsed due to a lack of investment and Iranian exports have suffered due to U.S sanctions. OPEC, meanwhile, has little capacity to fill the gap as demand for oil quickens. Benchmark Brent oil futures rose by 84 cents per barrel, or 1.1 percent, to $78.91 per barrel by 8:38 a.m. ET (1238 GMT), following a 1.2-percent climb on Monday. U.S. light crude futures were up 31 cents at $74.16, after ending the previous session roughly flat. Gold headed lower on Tuesday, weighed down by a stronger dollar, and may re-test a seven-month low after a failed attempt to break higher in the previous session. Spot gold was down 0.26 percent at $1,254.06 an ounce, after retreating from its highest since June 26 at $1,265.87 in the previous session. U.S. gold futures for August delivery were 0.4 percent lower at $1,254.60.