Major US stock index futures extended gains following upbeat Chinese manufacturing and renewed optimism over trade between China and the United States. The Caixin Manufacturing PMI came in at 50.8 versus an expectation of 50.1, the highest since January 2018 to signal a recovery in the Chinese manufacturing activity. On the other hand, Chinese and U.S. officials had productive trade talks last week as China took initiative in providing proposals on a range of issues. On Friday's close, the S&P500 posted its best Q1 advance since 1998. During the Asian session, the S&P500 futures rallied to a high of 2857, the Dow Jones Industrial Average futures climbed to a high of 26135, and the Nasdaq futures jumped to a high of 7487.
The dollar index which measures the greenback against a basket of major currencies eased from a high of 97.34 to 97.11 as investors jumped into riskier assets. The trade optimism between China and the United States enhanced investor's risk sentiment and weighed on safe-haven assets. Moreover, the US 10-year Treasury yields recovered to a one-week high of 2.45%. Market participants await the February retail sales data and ISM manufacturing PMI. The USDCHF dropped to 0.9945, and the USDCAD tumbled to 1.3339.
The euro remains fragile against rivals following the release of manufacturing PMI. The final reading of the March manufacturing PMI came in line with the preliminary reading to confirm the slowdown in the manufacturing activity in the region. Market participants await the release of the March inflation figures where a soft reading could weigh on the single currency. The EURUSD is slightly up on the day trading near $1.1240, while the EURAUD declined to a six-week low of 1.5752.
The gold ounce recovered on Friday after Thursday's sell-off to trade near the psychological level of $1300. However, the safe-haven metal erased gains earlier today as investors preferred riskier assets amid improved risk sentiments following upbeat Chinese data. The silver ounce held earlier gains and traded near $15.10. Meanwhile, palladium snapped its losing streak and bounced to $1385.
Oil prices edged higher towards a fresh four-month high following solid Chinese manufacturing data. The data indicates that the economic activity in China is picking up which could boost the global economy and the demand for oil prices. On Friday's close, US crude prices posted their best quarterly gain since 2009 proving that OPEC-led supply cuts delivered the needed results. The West Texas Intermediate crude futures rallied to a high of $60.72, and the Brent futures climbed to a high of $68.55.
Major Economic Events
Manufacturing PMI (Mar)
CPI (YoY) (Mar)
Core Retail Sales (MoM) (Feb)
ISM Manufacturing PMI (Mar)
BoC Gov Poloz Speaks
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM . Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.