Friday June 22nd

22-06-2018

Dow set to rise more than 100 points, tries to avoid longest losing streak in 40 years

U.S. stock index futures rose ahead of Friday's open, as investors tried to shake off any jitters concerning trade tensions between the U.S. and China. Around 8:32 a.m. ET, Dow Jones Industrial Average futures rose 122 points, indicating a positive open of 132.30 points. The Dow closed lower in the previous session, marking its first eight-day losing streak in over a year. If the Dow fails to post a gain on Friday, it would mark its first nine-day slide in 40 years. Nasdaq 100 and the S&P 500 futures also indicated a positive start to their respective trading session. As another trading week draws to a close, market-watchers will likely be awaiting news coming out of the political, economic and commodity spheres. Markets around the globe have been on a roller-coaster ride this week as tensions surrounding a tit-for-tat trade dispute between the U.S. and China continue to escalate. On Monday, President Donald Trump requested the United States Trade Representative identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. Those tariffs followed levies announced by both nations last week. Consequently, Beijing stated that it would deliver its own set of counter measures, if required. OPEC ministers struck a deal regarding oil production levels in their countries, sending crude prices higher. Reuters reported the cartel agreed to boost output by 1 million barrels per day. However, analysts say the increase will likely fall between 600,000 and 800,000 barrels per day as some OPEC members will not be able to sufficiently ramp up crude production. U.S. crude rose 1.5 percent to $66.55 per barrel on Friday. Energy stocks Chevron and Exxon Mobil both rose more than 1 percent before the bell, while the Energy Select Sector SPDR Fund (XLE) gained 1.3 percent. Date due Friday includes the U.S. flash composite purchasing managers' index (PMI) figures, which is due out at 9:45 a.m. ET. Major Asian markets closed mixed on Friday, following losses seen on Wall Street and amid investor concerns about the trade dispute between the U.S. and China. Japan led losses in Asia: The benchmark Nikkei 225 slid 0.78 percent, or 176.21 points, to close at 22,516.83, but was off its intraday low. Early declines in South Korea reversed, with the Kospi finishing up 0.83 percent at 2,357.22. Greater China markets were in positive territory. On the mainland, the Shanghai composite rose 0.49 percent to close at 2,889.95. The smaller Shenzhen composite advanced 1.21 percent. Hong Kong's Hang Seng Index, meanwhile, edged higher by 0.3 percent by 3:14 p.m. Gold prices held steady on Friday, after hitting a six-month trough in the previous session, as the U.S. dollar pulled back from a 11-month peak on profit-booking. Spot gold was little changed at $1,267.38 an ounce, as of 0304 GMT. In the prior session, the bullion touched $1,260.84, its lowest since Dec. 19, 2017. However, the yellow metal was headed for a 0.9 percent decline for the week. A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies. U.S. gold futures for August delivery were 0.1 percent lower at $1,269.10 per ounce.