Shares on Wall Street are seen starting higher, joining European indices to head north, as trade worries seem to be on the back burner for investors for now.
US stocks tumbled yesterday as President Donald Trump's trade tactics seemed to become more than just hot air amid his threat of tariffs on around US$450bn more on Chinese products.
The Dow Jones Industrial Average lost over 287 points at 24,700, while the Nasdaq lost over 21 points at 7,725. The S&P 500 closed around 11 points lower at 2,762.
The Dow Jones Industrial Average fell over 300 points in early trade, after President Trump asked for $200 billion in Chinese exports to be identified for a fresh round of tariffs https://t.co/WtU1TKZkU9— The Wall Street Journal (@WSJ) 19 June 2018
In futures today, thing have reversed, with Dow Jones futures 118 points ahead and Nasdaq futures up 22. The broader-based S&P500 is up nearly nine points.
On the macro front, traders will be looking out for info on home sales and comments from Fed chairman Jerome Powell who will be speaking in Portugal.
In London, FTSE 100 is up over 89 points at 7,692, having lagged yesterday. The German DAX has also rebounded to be 57 points ahead at 12,735.
In Asia overnight, the Nikkei 225 in Japan shot up, adding 276 points at 22,555, while the Shanghai composite Index is up nearly eight points at 2,915.
US crude is also up a tad - 0.05% to US$65.12 a barrel, ahead of the OPEC meeting on Friday.
"Despite the White House heightening the trade war rhetoric with a 35-page report – the snappily titled ‘How China's Economic Aggression Threatens the Technologies and Intellectual Property of the United States and the World’ – the European markets broadly mounted a rebound after the bell,” said Connor Campbell, analyst at London based spreadbetting group Spreadex.
"All of the major sectors were in the green, with the fact Brent Crude is back above $75.50 per barrel following a half a percent rise certainly helping the UK index have the edge over its Eurozone peers.
"The pound wasn’t as fortunate as the FTSE. Against the dollar it dipped another 0.1%; and while that may not sound like a lot, it leaves cable straining to hold its head above $1.315, its worst price in 7 months."