US Stock-Index Futures Edge Higher on Phase 1 Deal


Major US stock index futures edged higher as China and the United States agreed on their phase 1 of the awaited trade deal. The market reaction to the announcement was shy as investors look forward to furthering details on key points such as the agricultural purchases. The Dow Jones Industrial Average futures rose to 28222, the S&P500 futures inched higher to 3185, and the Nasdaq futures rallied to 8556.


The dollar index, which measures the greenback against a basket of major currencies, hovered above 97 as European currencies surrendered gains. The euro and pound account for almost 70% of the dollar index basket. The index incurred losses as investors rushed to European currencies following Boris Johnson's win in the UK election, and upbeat comments from the ECB president Christine Lagarde. On the other hand, the phase 1 deal between China and the United States eased investors' concerns over the US economic outlook, which would allow the Federal Reserve to pause interest rate cuts through 2020.


Gold prices remained caught in a tight trading range awaiting fresh fundamental drivers. The phase 1 trade deal between the world's largest economies failed to impress investors and encourage them to flee safe-haven assets. The price of a gold ounce hovered near $1475, the price of a silver ounce held steady near $17, while palladium tackled upside resistance at $1970.


Oil prices inched higher as China and the US agreed on phase 1 of their trade deal. The West Texas Intermediate crude futures rose to $60.45, and Brent futures advanced to $65.77.

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