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Equity Indexes Surge on Trade Truce

Stock futures showed solid gains Monday morning as the market reacted positively to the latest developments in the U.S./China trade dispute.

In a separate meeting during the G-20 Summit in Osaka, Japan on Saturday, President Trump and Chinese President Xi Jinping came to an agreement regarding new levies on American and Chinese goods. This news stirred optimism amongst market speculators and analysts.

“The markets appear to be content with the cooperative tone coming out of the meetings,” said Dan Deming, managing director at KKM Financial.

Agreeing to continue trade negotiations with Beijing, President Trump offered to ease restrictions on Chinese tech company Huawei. Chinese officials also agreed to purchase U.S. farm products which should in turn boost the American agricultural sector.

“We’re right back on track…We’re holding back on tariffs and they’re going to buy farm products,” Trump said after concluding his meeting with Xi.

Kicking off the second half of 2019, here is how US markets are shaping up:

  • Micro E-mini Nasdaq 100 Futures are up 1.88%
  • Micro E-mini S&P 500 Futures are up 1.20%
  • Micro E-mini Russell 2000 Futures are up 1.30%
  • Micro E-mini Dow Futures are up 1.03%

Micro E-mini Emini Nasdaq NQ MNQ futures

The above chart displays price action in Micro E-mini Nasdaq futures since the relative low on June 3rd. The tech-heavy index is up nearly 2%, indicating that American tech companies are encouraged by the progress between the two trade giants.

With unpredictable and news-driven markets, the ongoing trade dispute between the U.S. and China is sure to provide volatility and trading opportunities for new Micro E-mini futures. With that in mind, traders should always be aware of the risks involved and practice risk mitigation techniques such as stop loss orders.

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