On Friday, Wall Street Futures made steady gains with the Dow futures gaining 0.05 percent, up 13 points. S&P 500 futures gained 0.04 percent up 1 point and the Nasdaq 100 futures gained 0.12 percent up 9 points. Investors are now focusing on the Q2 earnings growth and the impact the trade war would have on corporate profits.
Heavy tech Nasdaq 100 futures was boosted by positive earnings from JP Morgan who reported that they beat forecasts of $27.55 billion with a 6 percent increase in revenue of $28.39 billion. In pre-market trade, shares gained 0.64 percent and were at $107.54.
Wells Fargo and Citigroup are expected to release their reports later in the day.
Trade War Ramps Up
Trade war tensions are now the focus of markets after the U.S. threatened to add a further 10 percent tariff worth $200 billion of Chinese imports on Tuesday.
The additional potential tariffs are targeted on cotton, refrigerators, steel and aluminium products including electronics, auto parts and the textile industries.
If the tariffs come into effect the export sector in China could suffer a significant deterioration in competitiveness vs the U.S.
Steven Mnuchin, U.S. Treasury Secretary reportedly said that deeper economic reforms must be made by China and that he together with the U.S. Administration are available for discussions.
Zhang Jun, China’s vice foreign minister on Friday said that the international community does not support the actions of the U.S. and that the accusations against China were groundless.
During U.S. President Trumps European tour he told news reporters that the U.K’s plan of Brexit with the European Union would likely make a U.S. – British trade deal unfeasible.
Theresa May, the UK Prime Minsters plan would most likely kill the deal, as the U.S. would be dealing with the EU and not the UK.
Looking ahead markets are focusing on any clues regarding any future interest rate hikes from Raphael Bostic, Atlanta Fed President who will be participating in a town hall chat.
Oil prices fell 4 percent in its weekly decline after Libya returned to the market.
While the U.S. rig count of active rigs rose with an additional 5 rigs to 863 who are drilling for oil as Energy Company’s ramp up production.
Scheduled for release later in the day is data for June import and export prices.
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