U.S. Stocks Set To Open Higher As Positive Data From China Supports MarketsS&P 500 futures are gaining ground in premarket trading as profits at China’s industrial firms continue to grow.
Profits At China’s Industrial Firms Continue To Rebound
China’s economy continues to rebound after the initial shock dealt by the coronavirus pandemic. Traders watch China’s economic data closely to evaluate the speed of the global market recovery.
In September, U.S. stocks found themselves under pressure due to fears about the speed of economic recovery, so any data that points to continued global recovery has the potential to provide meaningful support to the U.S. stock market.
Coronavirus Aid Package Negotiations Are Set To Continue
On Sunday, U.S. House Speaker Nancy Pelosi stated that the new coronavirus aid package deal could be reached and that negotiations between Democrats and Republicans continued.
The U.S. economy needs another stimulus package to support consumer activity but negotiations stalled due to the huge gap between the proposals of Democrats and Republicans.
Perhaps, the recent Initial Jobless Claims report, which indicated that the job market recovery was losing steam, provided more incentives to reach a deal.
The potential coronavirus aid bill also serves as a bullish catalyst for stocks today, and additional positive news on this front may provide more support to the stock market this week.
Brexit Is Back Into Spotlight
GBP/USD made a major upside move today after reports indicated that EU and Britain moved closer to reach consensus on the divorce deal.
The talks have entered their final stages, and EU expects to see a deal by the end of October so that it could be ratified by the European parliament by the end of this year.
A deal between EU and UK will provide support to the world markets while a no-deal Brexit can send financial shockwaves across the globe.
The stock market will likely pay more attention to Brexit news closer to the middle of October. That said, positive rumors about EU – UK negotiations have certainly provided additional support to stocks today.
For a look at all of today’s economic events, check out our economic calendar.