WASHINGTON (dpa-AFX) - Following the volatility seen in the previous session, stocks are likely to show a strong move to the upside in early trading on Monday. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 273 points.
Easing trade concerns are likely to generate early buying interest after President Donald Trump and Chinese President Xi Jinping agreed to restart stalled trade talks.
Trump met with Xi on the sidelines of the G20 summit in Osaka, Japan, over the weekend, telling reporters the meeting 'excellent, as good as it was going to be' and 'we're right back on track.'
In his closing G20 press conference, Trump revealed that he will not follow through on threats to raise tariffs on all remaining Chinese imports 'at least for the time being.'
The president also suggested that the U.S. would allow American companies to sell products to Chinese tech giant Huawei that do not pose national security concerns.
In return for holding off on tariffs and loosening restrictions on sales to Huawei, Trump said China has agreed to purchase large quantities of U.S. agricultural products.
Trump noted that existing tariffs on Chinese imports will remain in place, suggesting the U.S.-China trade dispute could still act as headwind to the global economy unless the conflict is eventually resolved.
'The quality of the transaction is far more important to me than speed,' Trump said in a post on Twitter. 'I am in no hurry, but things look very good!'
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on national manufacturing activity in the month of June.
The purchasing managers index is expected to dip to 51.0 in June after edging down to 52.1 in May, with a reading above 50 still indicating growth in the manufacturing sector.
The Commerce Department is also due to release its report on construction spending in the month of May. Construction spending is expected to come in virtually unchanged for the second straight month.
After showing an initial move to the upside, stocks saw considerable volatility over the course of the trading session on Friday. The major averages showed wild swings as the day progressed but largely maintained a positive bias.
Eventually, the major averages ended the day firmly in positive territory. The Dow rose 73.38 points or 0.3 percent to 26,599.96, the Nasdaq climbed 38.49 points or 0.5 percent to 8,006.24 and the S&P 500 advanced 16.84 points or 0.6 percent to 2,941.76.
Despite the gains on the day, the major averages all moved lower for the week. The Dow fell by 0.4 percent, while the Nasdaq and the S&P 500 both dipped by 0.3 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index surged up by 2.1 percent, while China's Shanghai Composite Index soared by 2.2 percent.
The major European markets have also moved to the upside on the day. While the French CAC 40 Index has advanced by 0.9 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 1.3 percent.
In commodities trading, crude oil futures are jumping $1.66 to $60.13 a barrel after slumping $0.96 to $58.47 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,396.30, down $17.40 from the previous session's close of $1,413.70. On Friday, gold rose $1.70
On the currency front, the U.S. dollar is trading at 108.31 yen compared to the 107.85 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1351 compared to last Friday's $1.1373.
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