Wall Street gains on trade talk progress
Wall Street stocks advanced on Friday amid reports of “good” talks between the US and China. Oil prices rebound but the weak demand outlook tempers gains. Markets are now looking forward to the annual Jackson Hole symposium, which starts on Thursday.
US30USD Daily Chart
The US30 index gained for a second straight day on Friday and is set to extend those gains today on positive vibes between the US and China
The index is rising toward the 55-day moving average at 26,529, which has capped prices for the past 10 trading sessions
White House economic adviser Larry Kudlow said recent phone calls between the US and China had been “positive,” potentially opening the door to further progress toward a deal, with more calls planned over the next week to 10 days. There are no major economic releases scheduled for today.
The Germany30 index snapped a two-day losing streak at the end of last week and has started positively this morning in early trading. Reports that Germany was prepared for deficit spending if recession hits helped sentiment as did speculation that next month the ECB may unveil a bigger stimulus package than markets are expecting
The index is rising toward the 200-day moving average at 11,662
Euro-zone consumer prices probably fell 0.4% m/m in July, the latest survey of economists shows. That would be the weakest reading in six months.
Crude oil prices look set to rise for a second straight day today, boosted by the positive sentiment in equities though capped by a gloomy demand outlook
West Texas Intermediate is rising toward the 200-day moving average at $56.08. The 100-day moving average, which has capped prices since July 16, is at $58.59
US drillers added to the number of oil rigs in production for the first time since June last week, according to the weekly Baker Hughes report. Weekly API crude oil stockpiles data are due tomorrow. Last week saw the first addition to reserves in nine weeks.