Wednesday June 20th

13-06-2018

US stock futures bounce back after Dow wipes out gains for 2018 in previous session

U.S. stock index futures rose ahead of Wednesday's open, as markets tried to reclaim some footing after losing significant ground in the previous session. Around 7:05 a.m. ET, Dow Jones industrial average futures rose 98 points, indicating a positive open of 101.79 points. Nasdaq 100 and the S&P 500 futures also indicated solid gains at the start of their respective trading session. The moves in premarket trade came after Wall Street posted heavy losses during Tuesday's session. U.S. stocks sank yesterday as trade tensions intensified, causing the Dow Jones industrial average to close down almost 300 points, having erased all of its gains for the year during the session. Other major domestic indexes also closed lower. Looking to markets overseas, stocks tried for gains Wednesday following Tuesday's turbulent session. Investors still remain on edge, however, as turbulence surrounding global trade rumbles on. The gloomy mood across markets stems from Monday, when President Donald Trump requested the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs, at a rate of 10 percent. These additional levies would be imposed on China if it refused "to change its practices" and continued with the new levies it declared on the U.S., Trump said. The news, which comes hot on the heels of recent tariffs imposed by both nations last week, continued to rattle both China and investors. Following Trump's statement, Beijing reacted by pledging to retaliateagainst the U.S., with its Commerce Ministry stating that the U.S. had initiated a "trade war that violates market laws and is not in accordance with current global development trends." The turmoil surrounding the U.S. isn't just isolated to trade, however. Concerns over Washington's policy of separating migrant children from their parents has also upped concern, while the U.S. announced Tuesday that it would withdraw itself from the United Nations' Human Rights Council, citing alleged bias against Israel. Aside from politics, crude futures will be at the forefront of investors' attention as members of the oil cartel OPEC meet in Vienna, Austria this week. On Wednesday, oil prices were on the rise, boosted by a recent drop in U.S. commercial crude inventories, according to Reuters. Benchmark Brent crude was up 38 cents, or half a percent, at $75.46 a barrel by 8:32 a.m. ET (1232 GMT). U.S. light crude rose 69 cents, or 1.1 percent, at $65.59. Asian stocks closed higher on Wednesday, with regional markets paring some of the sharp losses made in the previous session caused by elevated fears of a trade war between the U.S. and China. Japan's Nikkei 225 rose 1.24 percent, or 276.95 points, to end at 22,555.43 in a choppy session. Markets in South Korea shrugged off trade-related concerns, with the Kospi rising 1.02 percent to close at 2,363.91. Greater China markets also recovered slightly after Tuesday's plunge. The Hang Seng Index tacked on 0.92 percent by 3:10 p.m. Mainland markets reversed early declines to finish the day higher. The Shanghai composite closed up 0.31 percent at 2,916.74, although it remained below the 3,000 mark it breached on Tuesday. The smaller Shenzhen composite got a boost in the afternoon, ending the day higher by 1.16 percent. Gold prices were little changed on Wednesday, after slipping to a near six-month low in the previous session, as equities rebounded. Spot gold held steady at $1,274.84 an ounce. The metal fell to its lowest since Dec. 22 at $1,270 an ounce on Tuesday. U.S. gold futures for August delivery were, however, 0.12 percent lower at $1,277.10.