Monday February 25th

25-02-2019

Dow futures rise more than 100 points as Trump delays tariff increase

U.S. stock futures pointed to a higher start to the trading day Monday after President Donald Trump announced a delay in trade tariffs on Chinese goods. Dow Jones Industrial Average futures were up 155 points, pointing to a gain of more than 100 points at the open. Futures for the S&P 500 and Nasdaq 100 were also higher. Market focus is largely attuned to the ongoing trade talks between the U.S. and China. Trump announced in a series of posts on Twitter Sunday evening that America is planning to delay a set of additional tariffs on Chinese goods that were due to begin in early March. In his posts, Trump cited "substantial progress" in bilateral talks between the world's two largest economies, including intellectual property protection and technology transfer issues. As a result, the president said he would suspend the new levies, however he did not state a new deadline. Last week, sources familiar with the situation told CNBC that the United States and China are discussing a late March meeting between Trump and Chinese President Xi Jinping in Florida. On the data front, Chicago Fed national activity index falls to -0.43 in January from +0.05 in December, followed by wholesale trade figures and a Dallas Fed manufacturing survey at 10 a.m. ET. Investors will also be watching corporate earnings numbers on Monday. Etsy, Hersha Hospitality and Shake Shack are set to report after the bell. Major Asian stocks markets closed higher on Monday amid trade optimism after U.S. President Donald Trump announced a postponement of a closely-watched deadline on March 1. Shares in mainland China saw solid gains on the day following the positive developments. The Shanghai composite surged 5.6 percent to 2,961.28 while the Shenzhen component added 5.587 percent to 9,134.58. The Shenzhen composite jumped 5.417 percent to 1,557.27. Over in Hong Kong, the Hang Seng index rose 0.52 percent in its final hour of trading. In Japan, the Nikkei 225 advanced 0.48 percent to close at 21,528.23 and the Topix rose 0.71 percent to finish its trading day at 1,620.87. Australia's ASX 200 also added 0.31 percent to close at 6,186.30, while South Korea's Kospi finished its trading day fractionally higher at 2,232.56. Oil prices turned sharply lower on Monday, tumbling more than 2 percent, after President Donald Trump urged OPEC to lower the cost of crude in an early morning tweet. U.S. West Texas Intermediate crude oil futures fell $1.36, or 2.4 percent, to $55.90 around 8:25 a.m. ET (1325 GMT). International benchmark Brent crude futures were down $1.53, or 2.3 percent, at $65.59 a barrel. Earlier Monday, oil futures rose on optimism over U.S.-China trade talks and tightened supply. On Friday, crude oil futures hit $67.73 a barrel, their highest levels in Nov. 16. "Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!" the president tweeted. Gold gained on Monday as the dollar eased on optimism that the United States and China are nearing a deal to end their trade war while palladium set another record high on deepening supply constraints. Spot gold rose 0.14 percent to $1,329.54 an ounce at 8:06 a.m. ET and U.S. gold futures were down 0.07 percent at $1,331.90. Capping gains were higher share prices, which rose on signs of progress in the U.S.-China trade conflict.