Tuesday February 12th

12-02-2019

Dow futures surge 200 points after tentative deal to avoid government shutdown

U.S. stock index futures rose Tuesday amid news that U.S. lawmakers had secured a tentative deal on border security funding on Monday. At around 7 a.m. ET, Dow Jones Industrial Average futures rose 210 points, indicating a gain of more than 190 points. Futures on the S&P 500 and Nasdaq 100 were also higher. The drafted agreement — which congressional aides said did not contain funds for President Donald Trump's border wall — could help to prevent another partial government shutdown due to begin from Saturday. The government was shut down for 35 days until Jan. 25, the longest one in history. Market focus is also largely attuned to global trade developments, with the U.S. and China trying to hammer out a deal before an early March deadline. Both sides expressed hopes the new round of negotiations, which began in Beijing on Monday, would bring them closer to a comprehensive trade agreement. The trade dispute has already started to impact global growth, with investors worried a protracted dispute could soon severely hurt corporate earnings. On the data front, Job Openings and Labor Turnover Survey (JOLTS) figures for December will be published later in the session. Stocks in major Asian stock markets closed higher on Tuesday, with stocks in Japan leading in the region. Japan's Nikkei 225 jumped 2.61 percent to close at 20,864.21, while the Topix gained 2.16 percent to finish its trading day at 1,572.60. Mainland Chinese markets were higher in the day. The Shenzhen component rose 1.149 percent to close at 8,010.07 while the Shenzhen composite advanced 1.203 percent to finish its trading day at 1,364.15. The Shanghai composite also went up 0.68 percent to close at 2,671.89. Hong Kong's Hang Seng index was largely flat, as of its final hour of trading. South Korea's Kospi gained 0.45 percent to close at 2,190.47. Oil prices gained 2 percent on Tuesday, supported by OPEC-led production cuts, which Saudi Arabia said it would surpass by over half a million barrels per day. International benchmark Brent crude futures were up $1.40, or 2.3 percent, at $62.91 a barrel. U.S. West Texas Intermediate crude oil futures rose $1.21, or 2.3 percent, to $53.62 a barrel by 0950 GMT. Gold rose on Tuesday's slight pause in the dollar's rally as the United States and China continue talks aimed at ending their trade conflict. Spot gold was up 0.33 percent at $1,312.78 an ounce at 8:30 a.m. ET after falling 0.4 percent in the previous session. U.S. gold futures gained 0.34 percent to $1,316.40.