NEW YORK, N.Y. – The US stock market futures are looking towards a more optimistic performance for the first day of the trading week ahead of the Christmas holiday break.
The three major indexes in the US are recording modest gains early on Monday. Amid the concerns of the market regarding the rumors of a possible missile test by North Korea, the developments on trade have helped strengthen the market. A recent announcement from both Washington and Beijing have increased market sentiments, especially after China announced its plans to open its financial markets further to more private businesses.
Missile test concerns in the market followed after North Korea reported that its leader Kim Jong-un had gathered a ruling party meeting to decide on ways to reinforce the military capability of the country. Plus, there were also speculations surrounding North Korea’s plans to discard its US diplomacy and schedule a missile-carrying rocket launch.
Meanwhile, China’s Ministry of Finance said on Monday that the tariff cuts it is going to impose on American goods are scheduled to take effect on the first day of 2020. It will include tariffs on integrated circuit boards, diabetes and asthma medications, frozen pork, and other 850 products imported from the US.
The recent step from the Chinese government regarding its trade negotiations with the US aims to promote a coordinated improvement in the trade environment, according to the official news agency of the country.
On Monday, the Chinese government has also reiterated its previous statement that it is going to open its power, telecom, and oil markets further to private competitors.
Elsewhere, stock markets were mostly trading flat on Monday.
The Nikkei 225 index in Japan was very little changed for the day, while Hong Kong’s Hang Seng index was modestly up by 0.1%. On the other hand, the Shanghai Composite index ended the day with a 1.4% decline.
The FTSE 100 index in Britain modestly went up by 0.1%, while the DAX index in Germany went down by 0.1%. Paris’ CAC 40 index was trading with a 0.1% decline as well.
Wall Street stocks are looking stronger with modest gains early this week, following a very optimistic trading session. Last week, the benchmark S&P 500 index recorded its 10th week of gains in 11 weeks and reaching its fourth record high in that period.
The two major indices in the US, the Nasdaq, and the Dow Jones Industrial Average, also ended the previous week with new record highs.
Meanwhile, history has proved that the US stock market is gunning towards more gains for the Santa Claus rally, which is the last five trading sessions for the year plus the first two trading sessions of the new year.