US Futures still up, watch AAPL, AAL, TMUS, MA

The S&P 500 Futures are trading firmly on the upside after President Trump confirmed the US-China trade deal was "intact"


The S&P 500 Futures are trading firmly on the upside after President Trump confirmed the US-China trade deal was "intact"; refuting trade advisor Peter Navarro’s claim that the US-China trade deal was "over". Trump confirmation is adding to investors’ optimism of a continued economic recovery fueled by New York City entering its reopening plan Phase 2. On Monday, the Dow Jones Industrial Average rebounded 153 points (+0.6%) to 26025, the S&P 500 rose 20 points (+0.7%) to 3117, and the Nasdaq 100 jumped 121 points (1.2%) to 10130, a fresh record close.

Later today, Investors will have an eye on reports on Markit's U.S. Manufacturing Purchasing Managers' Index (June preliminary reading, a rise to 51.5 expected) and New Home Sales (to rise to an annualized rate of 640,000 units in May expected).

European indices are on trading higher, helped by overall better than expected PMI’s. Indeed, preliminary readings of June Manufacturing PMI for the Eurozone rose from 39.4 to 46.9 (45.0 expected), Germany bounced from 36.6 to 44.6 (42.3 expected). U.K. and France posted an even better situation as they managed to post indicators above 50.0, the level above which the sector is expending. France Manufacturing PMI’s jumped to 52.1 from 40.6 (46.0 expected) and the U.K. to 50.1 from 40.7 (45.0 expected). Also, preliminary readings of June Services PMI rose to 47.5 (41.2 expected), for the Eurozone, 45.8 (42.0 expected) for Germany, 51.3 (45.2 expected) for France and 47.6 (39.0 expected) for the U.K.

Asian indices ended higher. The Hong Kong HSI jumped 1.62% while the Australian ASX 200 gained only 0.17%.

WTI Crude Oil Futures are gaining some ground helped by optimism on the economic recovery. Later today, API would release the change of U.S. oil stockpile data for June 19.

Gold is slightly rebounding after losing some ground following better than expected PMI data in Europe. 

Risk currencies recovered after Donald Trump said that Phase 1 deal with China was “intact”. EUR/USD rose 27pips to 1.1288.

US Equity Snapshot

Apple (AAPL) price target was raised to 400 dollar from 325 dollars by UBS, and to 380 dollars from 350 dollars at Deutsche Bank. Apple posted a record close yesterday at 358.87 dollars.

American Airlines (AAL), an airline group, is planning to raise 2 billion dollars through offering new shares and convertible bonds, or an increase of 500 million dollars compared to the previous planned offering, reported Bloomberg. Still according to Bloomberg, shares would be priced at 13.50 dollars each.

T-Mobile's (TMUS) shareholder SoftBank announced plans to sell about 200 million shares of the wireless network operator, worth about 21 billion dollars based on T-Mobile June 22 closing price.

Mastercard (MA), a payment processing company, was downgraded to "market perform" from "outperform" at Oppenheimer.

Source : TradingVIEW, Gain Capital

Build your confidence risk free

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.