Trump trade-war comments give stocks meager boost amid thin trading during 'Year of the Pig' celebrations

China Photos/Getty Images
  • Chinese markets except Hong Kong were closed Monday as part of Lunar New Year celebrations with the Hang Seng up 0.2%.
  • US futures are slightly higher following President Trump’s positive words about the US-China trade war ahead of his State of the Union address Tuesday.
  • European markets are mixed with the FTSE 100 and Italy’s FTSE MIB both trading up while France’s CAC 40 is broadly down.

After bullish comments on trade from US President Donald Trump, China stocks gained slightly in Hong Kong amid thinner trading as much of the region’s population heads into the Lunar New Year holidays.

In a sweeping interview with CBS’s Face the Nation, Trump touched on the economy and trade between the US and China – touting the strong January jobs report while saying talks with Beijing are “doing very well” and there is a “good chance” of a deal over tariffs.

See Trump’s CBS interview here.

  • The Hang Seng rose 0.2%. The Shanghai Composite Index and other Chinese markets are closed for the Lunar New Year holiday.
  • US futures signal a decline of less than 0.2% for the benchmark S&P 500, the Nasdaq and the Dow. Futures were up 0.1% as of 10.00 a.m in London (5.00 a.m EST).
  • Major European stock benchmarks were also little changed with the Euro Stoxx 50 flat.
  • Japanese and Australian stocks were boosted Monday with both markets closing up 0.5%.

A flurry of market catalysts are in store this week:

  • Google, Twitter, Ryanair, Disney, Philip Morris, and SoftBank are among those reporting earnings in the coming days. The Financial Times reported that Wall Street analysts have slashed their estimates for US earnings in the first quarter and now expect the first year-on-year decline since the second quarter of 2016.
  • Trump is set to deliver his State of the Union address on Tuesday.
  • On Wednesday, Federal Reserve Chairman Jerome Powell hosts a town hall meeting.
  • The Bank of England is due to report its rate decision and economic forecast on Thursday.

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