Stock futures rebound following US-China trade deal concerns
Traders will be watching data on manufacturing and new home sales
U.S. equity futures are pointing to a higher open, rebounding from a Monday evening plunge, after top White House trade advisor Peter Navarro clarified comments he made to Fox News on the U.S. China trade deal potentially being kaput.
“My comments have been taken wildly out of context. They had nothing at all to do with the Phase I trade deal, which continues in place. I was simply speaking to the lack of trust we now have of the Chinese Communist Party after they lied about the origins of the China virus and foisted a pandemic upon the world" said Navarro in a statement.
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President Trump commented saying the U.S.-China trade deal is "fully intact."
The major futures indexes are indicating a gain of 0.9 percent, coming back from 400 Dow points down.
Asian markets responded with gains. Japan's Nikkei added 0.5 percent, Hong Kong's Hang Seng jumped 1.6 percent and China's Shanghai Composite gained 0.2 percent.
In Europe, London's FTSE is adding 1.2 percent, Germany's DAX gained 2.8 percent and France's CAC was up 1.7 percent.
In the Monday session, the S&P 500 rose 0.6 percent, after initially sliding following weakness in overseas markets as the number of coronavirus infections surpassed 9 million.
The Dow Jones Industrial Average picked up 0.6 percent and the Nasdaq composite climbed 1.1 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38460.92 | -42.77 | -0.11% |
| SP500 | S&P 500 | 5071.63 | +1.08 | +0.02% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15712.748618 | +16.11 | +0.10% |
New data on U.S. home sales Monday showed the virus outbreak continues to disrupt the U.S. housing market. Sales of previously occupied homes plunged 9.7 percent in May, according to the National Association of Realtors.
On Tuesday, the Commerce Department serves up new home sales figures for May.
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Benchmark U.S. crude oil was higher by 66 cents at $41.41 per barrel in electronic trading on the New York Mercantile Exchange. It rose 71 cents on Monday. Brent crude, the international standard, edged 66 cents higher to $43.74 per barrel.
The Associated Press contributed to this article.