US equity-index futures edged higher as trade talks gathered pace ahead of a July 9 deadline and Senate negotiations continued over President Donald Trump’s $4.5 trillion tax cut package.
Contracts for the S&P 500 index and the Nasdaq 100 rose 0.3%. Major currencies were slightly higher against the dollar in early Asian trading, while stock futures showed gains in Japan, a decline in Hong Kong and little change in Australia. Crude oil fell 1% as traders wound back risk premium before OPEC+ meeting.
On Friday, US stocks rose to a fresh all-time-high for the first time since February, underscoring conviction the economy is withstanding policy uncertainties. Trump in April put tariffs on dozens of trading partners on pause for three months, providing a fillip for equities. A gauge of Asian stocks is set to climb more than 4% for a second month, while currencies are on track for their best winning streak in four years.
“The momentum and trends seen in risky markets portray an almost nirvana environment in which to operate,” Chris Weston, head of research at Pepperstone Group, wrote in a note. Rapid reduction of geopolitical risks and expectations about imminent trade deals are “all adding tailwinds to risk markets.”
Market sentiment was further supported as Treasury Secretary Scott Bessent signaled some potential extensions to wrap up major pacts by Labor Day.
Meanwhile, India’s trade team extended its stay in Washington to iron out differences as the two sides look to clinch a deal before the July 9 deadline, people familiar with the matter said. Trump also said he doesn’t think he’ll need to extend the deadline.
The market’s resilience may be seen as complacent with traders “eating up” the Trump administration’s rhetoric, said Kyle Rodda, a senior market analyst at Capital.com in Melbourne. Markets could trend higher should the aggregate tariff rate fall following the deadline, or face “some reversal” if deals don’t materialize, he said.
Read More: Trump Deals Poised to Fall Short of Sweeping Global Trade Reform
Separately, negotiations over Trump’s tax cut bill are continuing as Republicans seek to convince holdouts to support the bill for final passage, with a vote set to spill into Monday. The nonpartisan Congressional Budget Office estimates the measure would add nearly $3.3 trillion to US deficits over a decade.
Eyes will soon shift to Chinese manufacturing and non-manufacturing PMIs later Monday as traders assess the impact Trump’s trade war on its economy.
“Market participants will closely watch if new export orders in the manufacturing PMIs recover further after the US and China agreed on a trade truce in mid-May,” Commonwealth Bank of Australia strategists including Kristina Clifton wrote in a note to clients.
Some of the main moves in markets:
Stocks
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S&P 500 futures rose 0.3% as of 8:21 a.m. Tokyo time
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Hang Seng futures fell 0.3%
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S&P/ASX 200 futures were little changed
Currencies
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The Bloomberg Dollar Spot Index fell 0.2%
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The euro rose 0.2% to $1.1737
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The Japanese yen rose 0.2% to 144.41 per dollar
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The offshore yuan was little changed at 7.1675 per dollar
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The Australian dollar rose 0.1% to $0.6537
Cryptocurrencies
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Bitcoin rose 0.7% to $108,146.42
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Ether rose 2.7% to $2,499.38
Bonds
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Australia’s 10-year yield advanced four basis points to 4.17%
Commodities
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West Texas Intermediate crude fell 1% to $64.84 a barrel
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Spot gold fell 0.2% to $3,269.12 an ounce
. Read more on Markets by NDTV Profit.