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US pre-open: Futures point to flat session ahead of trade deal signing

By Iain Gilbert

Date: Wednesday 15 Jan 2020

US pre-open: Futures point to flat session ahead of trade deal signing

(Sharecast News) - US futures were pointing to a broadly flat open on Wednesday as investors awaited the signing of Washington and Beijing's "phase one" trade agreement.
As of 1250 GMT, Dow futures were down 0.18%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.07% and 0.02% softer, respectively.

The Dow closed 32.62 points firmer on Tuesday as a slew of earnings from some of the country's biggest lenders began to roll in.

Market participants will be keeping a close eye on the trade deal signing after Treasury Secretary Steven Mnuchin said tariffs on Chinese goods would remain in place until both nations were able to reach an enforceable "phase two" agreement, according to Reuters.

US trade representatives said the document included a "dramatic expansion of US food, agriculture and seafood product exports" and would lead to China buying at least $200.0bn in US products over a two-year period.

Oanda's Craig Erlam said: "The big day has arrived and investors are, well, not quite sure what to do and whether there's actually much cause for excitement yet.

"European stocks are mostly treading water while US futures are marginally lower following a lacklustre start to the week. We've been waiting for the signing ceremony for so long but there is a worry that, despite details of the deal being largely concealed, what we are hearing is a little underwhelming and may be already priced in, maybe even too much."

Also in focus, more results from some of the US' biggest banks - with Goldman Sachs and Bank of America both topping Wall Street estimates with their latest quarterly results ahead of the opening bell.

On the data front, the New York Empire State Fed survey will be published at 1330 GMT, as will December's producer price index figures.

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