Brexit deal helps U.S. futures bounce

[December 08, 2017]   

By Sruthi Shankar and Rama Venkat Raman

(Reuters) - U.S. stock futures pointed to a higher opening for Wall Street on Friday, helped by gains for global stock markets after Britain secured EU agreement to move on from the first-round of Brexit negotiations.

- Barclays <BCS.N> and LLoyds Banking Group <LYG.N> were among New York's biggest gainers in early trade, up more than 4 percent after an overnight deal signaled the two sides will be able to move on to talks about trade.

- Any trace of concerns of a federal government shutdown was erased for the moment after the U.S. Congress sent a short-term funding bill to President Donald Trump but left fights over budget priorities and a range of other controversial issues for the coming weeks.

- White House legislative affairs director Marc Short said in an interview to Reuters that Trump wanted a corporate tax rate of 20 percent in the rate cut package being debated in Congress despite the president saying recently that it could end up higher.

- Oil prices edged up, helped by rising Chinese crude demand and threats of a strike in Africa's largest oil exporter. [O/R]

- The main monthly reading of the U.S. labor market's health is expected to show job growth increased at a strong clip in November and wages rebounded as the distortions from this year's hurricanes faded.

- Nonfarm payrolls are predicted to have increased by 200,000 jobs in November after surging 261,000 in October, while the unemployment rate is expected to stay at 4.1 percent. The report is due at 8:30 a.m. ET (1330 GMT).

- Expectations for another rise in Federal Reserve interest rates on Dec. 13 are now set firm, but the numbers will help shape the debate on monetary policy next year.
 

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., December 4, 2017. REUTERS/Lucas Jackson

- U.S.-listed shares of European banks Credit Suisse <CS.N>, Deutcshe Bank <DB.N>, ING Groep <ING.N> and Banco Santander <SAN.N> were all also up by between 2 percent and 4 percent after a long-sought revision to Basel III regulatory norms was published.

- Shares of American Outdoor Brands <AOBC.O> slumped about 19 percent after Smith & Wesson fire arms maker provided a disappointing earnings forecast.

- Alexion Pharmaceuticals <ALXN.O> rose 5 percent in thin trading after the New York Times reported hedge fund Elliott Management is urging the company to take more action to boost its stock price, including exploring a sale.

Futures snapshot at 6:59 a.m. ET:

- Dow e-minis <1YMc1> were up 30 points, or 0.12 percent, with 12,609 contracts changing hands.

- S&P 500 e-minis <ESc1> were up 4.5 points, or 0.17 percent, with 91,439 contracts traded.

- Nasdaq 100 e-minis <NQc1> were up 25.75 points, or 0.41 percent, on volume of 17,971 contracts.

(Reporting by Sruthi Shankar and Rama Venkat Raman in Bengaluru; Editing by Arun Koyyur)

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