Stocks- U.S. Futures Jump on Comments From Chinese President Xi
10 April 2018, 17: 19
U.S. futures surged on Tuesday, as comments from China’s president eased investor jitters over a potential trade war between the two largest economies in the world.
The was up 29 and a half points or 1.13% to 2,648.50 as of 6:44 AM ET (10:44 GMT) while increased 273 points or 1.14% to 24,285.0. Meanwhile tech heavy rose 102 points or 1.57% to 6,599.0.
Chinese President Xi Jinping said on Tuesday he would open the country’s economy and lower import tariffs on automobiles. He also promised to enforce the legal intellectual property of foreign firms, which was a point of contention for U.S. President Donald Trump.
The comments helped soothe investor worry over an escalating trade war between the two countries. However none of the comments made by Xi were new, and had been promised in some form or other in the past. Xi also did not give a time frame from when the new measures would take place.
Investors are closely watching technology stocks, as Facebook (NASDAQ:) CEO Mark Zuckerberg is scheduled to appear before a U.S. Senate committee at 2:15 PM ET (18:00 GMT).
Facebook was up 0.70% in pre-market data, while Tesla (NASDAQ:) surged 3.57% and Apple (NASDAQ:) increased 1.65%. Telecommunications firm Nokia (HE:) Corp ADR (NYSE:) gained 1.85% and Ford Motor Company (NYSE:) rose 1.16%.
Elsewhere Chinese education firm Hailiang Education Group Inc (NASDAQ:) fell 1.44% while solar firm Sunrun Inc (NASDAQ:) was down 2.32%.
In economic news, the (PPI) is released at 8:30 AM ET (12:30 GMT) while is out at 10:00 AM ET (14:00 GMT). Atlanta Federal Reserve President Raphael Bostic is also expected to speak at Harvard University on fair housing in the U.S.
In Europe stocks were up. Germany’s rose 136 points or 1.11% while in France the increased 36 points or 0.69% and in London, the was up 38 points or 0.53%. Meanwhile the pan-European gained 25 points or 0.76% while Spain’s surged 34 points or 0.35%.
In commodities, fell 0.10% to $1,338.70 a troy ounce while futures rose 1.18% to $64.17 a barrel. The which measures the greenback against a basket of six major currencies, was flat at 89.53.