Trade Hopes Support Market, Business Sentiment Improves, Pro-Democracy Candidates Emerge Victorious In Hong Kong

The U.S. Futures Are Up In Early Trading

The U.S. futures are indicating a slightly higher open for the broad equities market in early Monday trading. The NASDAQ Composite is in the lead with a gain of 0.30% while the Dow Jones Industrials and S&P 500 are both close behind. The move is driven by lingering hope the U.S. and China will reach a Phase One Trade Deal by year’s end. On Friday, President Trump stoked hopes saying the two sides were getting closer but there is still no indication of how close they may be. The December 15th tariff deadline is just over 3 weeks away leaving little time for negotiators to do their work.

In stock news, shares of TD Ameritrade are up 2.0% after announcing an all-stock deal for Charles Schwabb. The deal is worth upwards of $26 billion and expected to close early next year. Shares of Tesla are also moving higher. The company says it has received 200,000 preorders for its new truck despite the botched launch event. Netflix is also moving lower. The cutting edge streaming service received a downgrade citing overzealous estimates from Wall Street analysts.

On the economic front, there is no major data released on Monday but there is a raft of data due out later this week. Due to the Thanksgiving holiday, most of the data will be released on Wednesday. On the calendar are a GDP revision, jobless claims, durable goods, Chicago PMI, Personal Income & Spending, Consumer Inflation, and the Fed’s Beige Book.

Business Sentiment Rises In Germany

Business sentiment rose in Germany over the last month as CEOs and CFOs reevaluate current conditions. The IFO business climate index rose to 95.0 from last month’s upwardly revised 94.7. The UK FTSE 100 is in the lead in early trading with a gain of 0.85% while the DAX and CAC are trailing with gains of 0.40% and 0.25%.

In the UK, investors are digesting manifestos put forth by competing political parties. The incumbent Conservative Party says it will take the UK out of the EU and focus on increasing jobs. The opposition Labour Party says it will levy a windfall tax on energy companies and the renationalization of utility infrastructure. In stock news, shares of luxury-goods maker LVMH has agreed to purchase Tiffany’s for $16.2 billion. Shares of LVMH are up 1.2% on the news while shares of Tiffany’s are up more than 6.0%.

Asian Markets Move Higher, Hong Kong Pro-Democrats Emerge Victorious

Asian markets are broadly higher after Monday’s session despite lingering concerns over trade. The Hong Kong Hang Seng is in the lead with a gain of 1.50%. In Hong Kong, markets were bolstered by the orderly turn-out of pro-democracy voters and the stunning victory of their candidates. The Korean Kospi was runner up in today’s session with a gain of 1.02% while the Nikkei, Shanghai Composite, and Australian ASX all advanced less than 1.0%.