Markets Expected To End On Positive Not This Week

The week could end on a positive note, with talks between Washington and Beijing reviving the mood of investors, who also have an eye on the bond market.

The Dow Jones Industrial Average index futures contract, which gives its trend, advance by 79 points to 24,783 points. That of the broad index S & P 500 takes 5.75 points to 2724.50 points, and that of the Nasdaq, dominated by technology, rises 16.25 points to 6922.25 points.

Context

The barrel of oil Brent exceeded $ 80 Thursday for the first time since November 2014, boosted by uncertainties around Iran and Venezuela, the CEO of Total even evoking the prospect of a barrel at $ 100.

European indices have opened slightly lower “in the wake of the resurgence of fears of trade war between the United States and China,” noted experts at Mirabaud Securities Geneva.

Washington and Beijing have resumed their delicate trade talks under the threat of the possible entry into force in less than a week of US sanctions. And to the question of whether there would be an agreement with China, US President Donald Trump said he had “a tendency to doubt”.

Another area of ​​concern for investors is the threat by North Korea to cancel the summit with Donald Trump scheduled next month in Singapore.

“Nothing is guaranteed for Singapore,” said Christopher Dembik, head of economic research at Saxo Bank.

In Europe, the eyes are also turned to Italy, when the 5-star movement (M5S, antisystem) and the League (far right), are working to finalize their joint program of an anti-system government.

“Political uncertainty undermines investor confidence,” said David Madden, an analyst at CMC Markets, adding that the possibility of having a Eurosceptic government in Rome weighed on Italian stocks all week.

Abroad

In Asia, Chinese stock markets ended the session in the green.

The United States and China resume Friday their delicate trade negotiations, less than a week of potential US sanctions on goods from the Asian giant.

On Thursday, the US president had expressed, before a meeting between Chinese and American officials, his pessimism about the outcome of the talks, saying he had “a tendency to doubt” that there could be an agreement with Beijing on their trade dispute.

The talks between Beijing and Washington have a positive effect on the mainland markets, said Zhang Qi, analyst of Haitong Securities, AFP. “Sitting around a table is better than mutual sanctions or customs barriers,” he said.

The market has been “relatively active today,” Zhang said.

On the agenda

On the indicators side, the agenda was relatively weak in the United States and Europe.

In Canada, the Consumer Price Index and the most recent retail trade figures will be released throughout the day.

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