Monday February 12th


US stocks are set to rally at the open as global markets bounce back

U.S. stock index futures rose sharply ahead of Monday's open, building upon the gains seen in the previous U.S. trading session, and from markets overseas. At 7:30 a.m. ET, Dow futures were indicating the industrial average will rise about 320 points at the open. The Nasdaq and S&P 500 futures also indicated a strong start to Monday's session. The movements seen in U.S. futures come on the back of a strong finish seen last Friday, and solid trading sessions seen in both Europe and Asia on Monday. In the previous session, the Dow Jones industrial average bounced back, rising over 300 points by Friday's close. While this was seen as positive for investors, last week still saw the Dow and S&P 500 end the week down some 5.2 percent each — their worst performance since January 2016. Investors have been on edge as of late over concerns surrounding higher interest rates, therefore moves in the bond market will continue to be of key importance going forward. The benchmark 10-year note yield rose to a four-year high, and traded at 2.878 percent Monday. On the data front, the U.S.' monthly Treasury statement is due out at 2 p.m. ET. In the political space, U.S. Vice President Mike Pence told The Washington Post that the U.S. was willing to talk with North Korea, even as severe sanctions continue to be placed onto the isolated nation. The news outlet went on to add that the plan had surfaced, while Pence was in South Korea, having discussions with its leader, President Moon Jae-in. Investors will also be awaiting news coming out of the U.S., where President Donald Trump is expected to unveil a $200 billion infrastructure plan. The plan is set to face criticism from Democrats in Congress, who argue that it doesn't offer as much funding as desired, Reuters reported. Elsewhere, oil prices posted sharp gains during the first day of the trading week, as markets regained some of their footing across the globe. U.S crude was trading around $60.10 at 7:30 a.m. ET, while Brent futures hovered around $63.59. Asian markets closed mostly higher on Monday while oil prices rose around 1 percent after recording six straight days of declines. South Korea's Kospi advanced 0.91 percent to close at 2,385.38, with heavily weighted technology stocks higher on the day. Greater China markets traded in positive territory in what will be a holiday-shortened trading week after taking a beating last week. Hong Kong's Hang Seng Index advanced 0.52 percent by 3:03 p.m. HK/SIN. On the mainland, the Shanghai composite tacked on 0.76 percent to close at 3,153.56 and the Shenzhen composite surged 2.65 percent to end at 1,723.73. Japanese markets were closed in observance of a public holiday. Ahead, Hong Kong markets will close between Feb. 16 and Feb. 19 and mainland markets will close between Feb. 15 and Feb. 21 for the Lunar New Year holiday. Gold prices rose on Monday as the dollar slipped, but gains are expected to be capped ahead of inflation data from the United States this week that could mean U.S. interest rates increase more quickly than expected. Spot gold was up 0.14 percent at $1,318.02 an ounce at 8:03 a.m. EST. It has fallen more than 3 percent since hitting a 17-month peak at $1,366.07 in January. U.S. gold futures rose 0.34 percent to $1,320.20 an ounce.