US futures climb with European stocks and gold
US futures rose and European stocks climbed to a one-week high as investors focused on U.S.-China trade discussions and American lawmakers making progress on an economic aid package.Updated: Aug 05, 2020, 18:46 IST
US futures rose and European stocks climbed to a one-week high as investors focused on US.-China trade discussions and American lawmakers making progress on an economic aid package.
Square Inc., which runs an peer-to-peer payment app, rallied in the pre-market trading as revenue surged. Walt Disney Co. climbed after posting a surprise profit. The Stoxx Europe 600 Index posted broad-based gains, with travel companies, commodity producers and retailers leading the charge.
Gold continued its ascent above a record $2,000 an ounce as investors considered the effects of more government stimulus. The dollar weakened . Ten-year Treasury yields edged up, but are still near the lowest since March.
Oil climbed to a five-month high in London, topping $45 a barrel after U.S. industry data showed a decline in the nation’s stockpiles.
Pressure is growing on Republicans and Democrats to resolve differences over a new U.S. virus relief package. Treasury Secretary Steven Mnuchin said the goal is to strike a deal on legislation by the end of the week.
“Hopes of a fiscal package will indeed be instrumental in any improvement in risk sentiment,” said Padhraic Garvey, head of Americas research at ING Financial Markets.
Meanwhile, America and China plan to assess their trade agreement in mid-August against a backdrop of rising bilateral tension, according to people briefed on the matter. China’s yuan strengthened to its highest level since March 11.
European economic data was positive, with a euro zone composite purchasing managers’ index climbing to 54.9, the highest level in just over two years and above a flash estimate. Orders increased for the first time in five months. Companies made further cuts to their workforce last month, according to IHS Markit, casting uncertainty over how sustainable the region’s upturn will be.
Elsewhere, Lebanon’s bonds were steady following the deadly blast in Beirut on Tuesday. The stock market was closed.
“Yesterday’s events could motivate the political parties to set aside their differences and make efforts to break the deadlock and begin to fix the economy,” said Richard Segal, a senior analyst at Manulife Investment Management in London.