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Top 3 things you need to know about the market on Monday
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Loading...1. U.S. and China reach trade truce
The U.S. and China agreed on Saturday to restart trade talks after U.S. President Donald Trump agreed to hold off on the implementation of new tariffs and also ease restrictions on tech company Huawei in order to reduce tensions with Beijing.
China meanwhile agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table.
No deadline was set for progress on a deal, and the two sides still remain at odds over significant parts of an agreement.
2. Risk appetite boosted by trade relief
Global stocks registered solid gains on Monday as trade tensions eased, boosting risk appetite.
Asian shares surged more than 2% while European stocks jumped to a two-month high.
U.S. futures pointed to a triple-digit gain in the Dow at the open, adding to a rally in June that was its best since 1938. Dow futures jumped 256 points, or 1.0%, S&P 500 futures rose 30 points, or 1.0%, while Nasdaq 100 futures traded up 126 points, or 1.6%.
3. OPEC set to extend production cuts after Iran’s approval
OPEC and its allies appear set to extend oil supply cuts through the end of the year as they meet in Vienna on Monday and Tuesday after Iran joined top producers Saudi Arabia, Iraq and Russia in endorsing the policy.
Iranian Oil Minister Bijan Zanganeh told reporters on Monday he would support the proposal to prolong output cuts by six to nine months.
Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend existing output cuts of 1.2 million barrels per day by six to nine months - until December 2019 or March 2020.
Saudi Energy Minister Khalid al-Falih suggested that the deal would likely be for the full nine months and said that deeper cuts were not necessary.
Oil prices surged nearly 3% on the news.
Trader Milko Zashev Read more:
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