Major US stock-index futures rallied during the Asian session on optimism over US-China trade talks. President Donald Trump tweeted that he will delay the increase in tariffs that was scheduled for March 1st. The talks are being productive, and he will be planning a summit with President Xi to seal an agreement. The Dow Jones Industrial Average futures rose to a high of 26118, the highest since early November. The S&P500 futures climbed to 2801, and the Nasdaq futures traded at a high of 7127, the highest since December 3rd.
The dollar index which measures the greenback against a basket of major currencies traded low near 96.35 ahead of a busy week. The latest surge in investors' risk appetite weighed on the greenback. Market participants await the Fed's Chairman Testimony on the Semiannual Monetary Policy Report tomorrow, and the fourth quarter GDP figures later this week. The USDJPY dropped to a low of 110.58, and the USDCAD tumbled to 1.3121.
Metals prices surged slightly as the dollar declined along with US Treasury yields amid optimism over trade talks. The gold ounce recovered from a low of $1321 to trade higher at $1333, and the silver ounce rose to a high of 15.99. Meanwhile, palladium soared to a fresh record high of $1526, supported by heavy car-makers demand and tight market supply.
Oil prices hovered near a three-month high supported by US-China trade talks. President Donald Trump announced the delay of the tariff increase as both parties are making progress. A trade deal between the world's largest economies would boost the global economy and increase oil demand. The West Texas Intermediate crude futures traded at a high of $57.79, and Brent futures tested a high of $67.70.
Major Economic Events
|10:00||UK||BoE Gov Carney Speaks|
|16:00||UK||FOMC Member Clarida Speaks|
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