The S&P 500 <.SPX> closed on Thursday within
striking distance of a record high last hit in July, as trade
concessions from Beijing and Washington helped stocks recover
from a sluggish start to the week.
U.S. President Donald Trump calmed markets further after he said
he was potentially open to an interim trade deal with China,
although he preferred a comprehensive agreement.
On Friday, China's official Xinhua News Agency said the country
would exempt some U.S. pork and soybeans from additional tariffs
on U.S. goods.
Concerns still linger about the long-term effect of the trade
war that has hit U.S. manufacturing and tempered global growth.
The International Monetary Fund forecast the tit-for-tat tariffs
could reduce global GDP in 2020 by 0.8%.
Investors are now keeping an eye on the U.S. Federal Reserve for
a decision on interest rate cuts next week, especially after the
European Central Bank announced a sweeping stimulus drive on
Thursday to prop up the euro zone economy.
With recessionary fears high for countries across the Atlantic,
U.S. market participants are closely monitoring every indicator
of domestic economic health.
At 8:30 a.m. ET, the Commerce Department is expected to report a
0.2% increase in August retail sales, after a surge of 0.7% in
July. Lower-than-expected figures might increase bets of a rate
cut from the Fed.
Traders currently see an 88.8% chance of a quarter percentage
point cut from the Fed this month, down from 90% a week ago,
according to CME's FedWatch.
At 7:11 a.m. ET, Dow e-minis <1YMcv1> were up 111 points, or
0.41%. S&P 500 e-minis <EScv1> were up 10.75 points, or 0.36%
and Nasdaq 100 e-minis <NQcv1> were up 33 points, or 0.42%.
(Reporting by Uday Sampath in Bengaluru; Editing by Shounak
Dasgupta)
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