Futures rise on hopes of accommodative Fed

People walk by New York Stock Exchange in the financial district in New York, US, August 10, 2017. — Reuters pic
People walk by New York Stock Exchange in the financial district in New York, US, August 10, 2017. — Reuters pic

NEW YORK, June 18 — US stock index futures rose today, as more dovish calls from the European Central Bank fuelled expectations of a similar accommodative stance from the Federal Reserve.

The US central bank is expected to leave interest rates unchanged at its two-day policy meeting starting today, but is widely seen as laying the foundation for a rate cut later this year.

The Fed’s statement at 2pm EDT (1800 GMT) tomorrow will likely provide insight into the impact of the US-China trade war, President Donald Trump’s calls for a rate cut and weaker economic data on monetary policy.

Adding to sentiment were ECB President Mario Draghi’s comments indicating a possibility of new rate cuts or asset purchases.

At 7.24am ET, Dow e-minis were up 106 points, or 0.41 per cent. S&P 500 e-minis were up 13.25 points, or 0.46 per cent and Nasdaq 100 e-minis were up 62.75 points, or 0.83 per cent.

Investors also braced for the Group of 20 summit at the end of the month, which may yield progress on resolving the prolonged trade war between the United States and China.

Large-cap volatile favorites such as Facebook, Apple, Amazon, Microsoft and Netflix were set to extend gains.

Facebook Inc climbed 1.5 per cent premarket after it revealed plans to launch a cryptocurrency called Libra, the latest development in its effort to expand beyond social networking and move into e-commerce and global payments.

General Electric inched up 0.6 per cent as the industrial conglomerate’s joint venture CFM International received an order for jet engines worth US$2 billion (RM8.35 billion) at list prices, a day after Indian airline IndiGo placed a US$20 billion order for CFM’s engines. — Reuters

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