NEW YORK, Dec 27 — US stock indexes were set to open at fresh record highs today as optimism over US-China trade relations and an improving global economy brightened investor sentiment going into the new year.
Signalling resilience in the global economy, data showed China’s industrial profits grew at the fastest pace in eight months in November.
The figures added to a slate of upbeat reports from the Asian country, including on industrial production and retail sales.
“With the trade deal coming into focus, there should be an easing of pressure on the global economy, beginning with China, and that will eliminate the possibilities of a global recession,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Robust US economic data, relatively loose monetary policy and hopes of an imminent trade truce between Beijing and Washington have fuelled a Wall Street rally this month.
The S&P 500, which has hit record highs in two of three sessions in a holiday-shortened week, is now about half a percentage point away from logging its best year since 1997.
All three major indexes posted record closing highs yesterday, with the Nasdaq breaching the 9,000 mark for the first time.
Still, some analysts have cautioned that weakness in Chinese demand remains a risk for company earnings next year.
At 8:29 am ET, Dow e-minis were up 84 points, or 0.29 per cent. S&P 500 e-minis were up 8 points, or 0.25 per cent and Nasdaq 100 e-minis were up 35 points, or 0.4 per cent.
In scant individual movers premarket, shares of Tesla Inc were indicated at another record high after the carmaker said it would begin delivering its China-made Model 3 vehicles on December 30. — Reuters
