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U.S. Stock Futures Rise as China Vows to Implement Trade Truce

Abhishek Vishnoi and Gabriella Lovas
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U.S. Stock Futures Rise as China Vows to Implement Trade Truce

(Bloomberg) -- U.S. stock-index futures pointed to a rally after China said the trade meeting with the U.S. was “very successful” and it is “confident” of implementing the results agreed upon at the talks.

December contracts on the S&P 500 Index rose as much as 0.6 percent. Futures on the Nasdaq 100 Index and Dow Jones Industrial Average gained a maximum of 0.8 percent and 0.5 percent, respectively.

Futures regained their footing in the wake of the underlying market’s biggest rout in almost two months on Tuesday. All three major indexes in the U.S. closed down more than 3 percent, as a lack of meaningful progress on trade relations between the U.S. and China damped investor sentiment while an inverted yield curve sparked concerns of a recession.

China’s positive remarks on Wednesday helped calm investors’ nerves, said Kay Van-Petersen, global macro strategist at Saxo Capital Markets Pte. The gains, however, may not last long as both “China and the U.S. seem confused about the trade agreement,” he said.

In Europe, equities fell on Wednesday, with most industry groups in the red amid recession fears and as traders watch Brexit deal negotiations.

U.S. markets will be closed Wednesday for the National Day of Mourning for former President George H.W. Bush. The Federal Reserve Board still plans to release the Beige Book at 2 p.m. EST even as its offices are closed.

(A previous version of this story was corrected to fix time in second paragraph.)

To contact the reporters on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net;Gabriella Lovas in Budapest at glovas2@bloomberg.net

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Paul Jarvis

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