U.S. stock futures indicated a modest gain Monday as a round of U.S.-China tariff negotiations in Beijing commenced and as another partial government shutdown loomed.
How are major indexes faring?
Dow Jones Industrial Average futures
rose 67 points, or 0.3%, to 25,149, while S&P 500 futures
rose 7.45 points, or 0.4%, to 2,713.50. Nasdaq-100 futures
rose 24.50 points, or 0.4%, to 6,941.25.
On Friday, the Dow
fell 63.20 points, or 0.3%, to 25,106.33, adding 0.2% for the week. The S&P 500 index
rose 1.83 points to 2,707.88 and the Nasdaq Composite Index
gained 9.85 points, or 0.1%, to 7,298.20.
The Dow extended its winning streak for a seventh week, while the S&P 500 and Nasdaq also logged gains.
What’s driving the market?
The latest round of trade talks set to begin Monday between the U.S. and China, with lower level discussions to start off the week, and Treasury Secretary Steven Mnuchin and trade representative Robert Lighthizer arriving Thursday and Friday for discussions.
Even if tariffs on China goods remain at 10%, as some have reported, the lingering uncertainty around a trade resolution would only highlight that a 12-month long negotiation between the world’s largest economies has failed to result in any deal.
That could further unsettle investors and U.S. corporations alike who are looking at a 12:01 a.m. Eastern Time March 2 deadline for an agreement to be struck between the two countries. The U.K., meanwhile, is spiraling toward a March 29 scheduled exit from the European Union with or without a trade agreement in hand.
As well, investors are bracing for another potential government shutdown after talks broke down between the main parties’ negotiators on Sunday over whether to limit the number of migrants authorities can detain. The White House hasn’t ruled out another shutdown if a border security compromise can’t be reached by midnight Friday.
There is no data on the calendar for Monday, but earnings from Restaurant Brands International Inc.
and Aurora Cannabis Inc.
are due to report ahead of the open.
How are other markets trading?
In Asia, the Shanghai Composite returned from a week of holidays to close up nearly 1.4%, while the Nikkei 225
was closed for a holiday. Stocks in Europe were higher across the board with the Stoxx Europe 600
was under pressure, while gold
also fell as the U.S. dollar
rose against its peers.
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