Wall Street futures rise up to 1.3% on US-China trade deal optimism; FOMC meet eyed

Wall Street futures rise on US-China trade deal optimism.

Wall Street futures rose on Monday afternoon (India time) as easing concerns over US-China trade tensions supported investor sentiment after recent volatility.

Futures gained as much as 1.3 percent after US and Chinese officials said that a series of agreements had been reached ahead of a key meeting between President Donald Trump and Chinese President Xi Jinping.

A softer-than-expected US inflation reading has also boosted expectations of a possible rate cut by the Federal Reserve. The Federal Open Market Committee will begin its two-day policy meeting on October 28, with the outcome due the next day.

At around 4 pm IST, Nasdaq 100 futures were up 1.3 percent, S&P 500 futures advanced 1 percent and Dow Jones Industrial Average futures added 0.62 percent.

U.S.-listed shares of Chinese companies gained in premarket trading. More than 170 companies are expected to report results as the busiest week of this earnings season kicks off, with all eyes on Big Tech. Earnings from "Magnificent Seven" heavyweights will be a litmus test for Wall Street's high valuations and the rally's staying power.

In Europe, the pan-European STOXX 600 and Germany’s DAX traded slightly higher, while France’s CAC 40 was marginally lower.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled sharply higher.

Back home, the Sensex jumped 566.96 points or 0.67 percent to settle at 84,778.84. During the day, it surged 720.2 points or 0.85 percent to 84,932.08. The Nifty climbed 170.90 points or 0.66 percent to 25,966.05.

(Reuters Inputs) 

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