Friday November 15th

15-11-2019

Stock futures rise after Kudlow signals US-China trade deal getting close

U.S. stock index futures were higher Friday after White House economic advisor Larry Kudlow said China and the U.S. were getting close to reaching a trade deal. At around 7:20 a.m. ET, Dow Jones Industrial Average futures rose 80 points, indicating a positive open of more than 82 points. S&P 500 and Nasdaq 100 were also higher. Wall Street closed higher on Thursday despite ongoing worries about U.S.-China trade. U.S. officials have sent positive signs about trade talks with China. Kudlow, the National Economic Council director, said Thursday that a deal between the two nations was approaching, highlighting constructive discussions with Beijing.  The major averages closed little changed on Thursday as recent jitters around U.S.-China trade tempered the excitement around the market’s record-setting rally. The S&P 500 and Dow are up 3.4% and 2.8%, respectively, over the past month. The Nasdaq Composite has gained 4.1% in that time. Investors awaited for various data releases Friday. There will be retail sales, import prices and the Empire State manufacturing numbers out at 8:30 a.m. ET. There will also be industrial production numbers released at 09:15 a.m. ET. Market players will also be waiting for the release of the Federal Reserve Financial Stability report due at 2 p.m ET. Federal Reserve Chairman Jerome Powell said Thursday that he does not see signs of bubbles brewing amid concerns over higher corporate and government debt. Asia markets were mostly higher on Friday, as investors digested recent developments on U.S.-China trade. The Nikkei 225 in Japan rose 0.7% to close at 23,303.32 while the Topix index added 0.73% to finish its trading day at 1,696.67. South Korea’s Kospi closed 1.07% higher at 2,162.18. Hong Kong’s Hang Seng index closed largely flat at 26,326.66. Mainland Chinese stocks, on the other hand, declined on the day. The Shanghai composite was 0.64% lower to around 2,891.34 and the Shenzhen component declined 1.01% to 9,647.99. The Shenzhen composite also fell 1.134% to about 1,605.70. Oil prices fell on Friday fueled by concerns about rising supplies next year, although losses were checked by signs of progress towards ending the U.S.-Chinese trade row. White House economic adviser Larry Kudlow said on Thursday a deal was “getting close”, citing what he described as very constructive discussions with Beijing. Benchmark Brent crude was down 27 cents at $62.01 a barrel, while West Texas Intermediate crude slipped 3 cents to $56.74 a barrel. Gold fell on Friday as comments from a White House official rekindled hopes of a U.S.-China trade deal and boosted appetite for riskier assets, but bullion was still on course for a weekly gain. Spot gold was down 0.4% at $1,465.43 per ounce, but was set to rise about 0.5% this week. U.S. gold futures were down 0.5% at $1,461.10 per ounce.