Monday December 2nd

2-12-2019

Stock futures rise to start December after big gains last month

U.S. stock index futures rose on Monday, the first trading day of December, as market participants monitored U.S.-China trade talks. At around 7 a.m. ET, Dow Jones Industrial Average futures indicated a gain of more than 70 points at the open. Futures on the S&P 500 and Nasdaq 100 were both higher as well. With those gains, Wall Street was set to build on a strong performance from November. The major averages had their biggest monthly gains since June, rallying to record highs. The S&P 500 climbed 3.4% last month while the Dow advanced 3.7%. The Nasdaq rallied 4.5%. Monday’s rise came despite Chinese state media reporting Sunday that Beijing wants a cancellation of tariffs for a phase one trade deal. There is no clear indication of when both countries will be able to sign an agreement and last week saw fresh tension between Washington and Beijing after President Donald Trump signed legislation supporting protesters in Hong Kong. Trump also said Monday he will restore tariffs on metal imports from Brazil and Argentina. In a tweet, he said: “Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.” Stock futures trimmed their gains after Trump’s comment. Trump noted in a separate tweet that “U.S. markets are up as much as 21%” since his first tariffs announcement on March 1, 2018, adding the U.S. is “taking in massive amounts of money.” On the data front, there will be new ISM manufacturing and construction spending figures are due out at 10 a.m. ET. Stocks in major Asian markets saw gains on the first trading day of December as Chinese factory activity sprung a positive surprise in November. Japanese stocks led gains among major markets in the region, with the Nikkei 225 adding 1.01% to 23,529.50. The Topix index also rose 0.89% to close at 1,714.49. Mainland Chinese stocks rose on the day, with the Shanghai composite gaining 0.13% to around 2,875.81 and the Shenzhen component adding 0.24% to 9,605.19. The Shenzhen composite advanced 0.219% to approximately 1,596.60. Hong Kong’s Hang Seng index also rose 0.41%, as of its final hour of trading. South Korea’s Kospi closed 0.19% higher at 2,091.92. Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand. The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day, two sources said. Brent crude, the global benchmark, rose $1.47 to $61.96 a barrel. U.S. West Texas Intermediate (WTI) crude added $1.36 to trade at $56.53 a barrel. Gold fell on Monday after better-than-expected manufacturing data from China assuaged fears of a slowdown in global growth while deficit-ridden autocatalyst metal palladium soared to an all-time high. Spot gold was down 0.4% to $1,457.98 per ounce. U.S. gold futures fell 0.6% to $1,463.90 per ounce.