U.S. stock index futures rose sharply on Monday, with chipmakers making handsome gains, as trade tensions between the United States and China eased after both sides agreed to restart talks.
“It played out as well as possible,” said Hans Peterson, SEB Investment Management’s global head of asset allocation. “So it gives us time to digest and get a bit better activity in the global economy.” Chinese blue chips jumped 2.6% to their highest since late April and Germany’s export-heavy DAX gained 1.5% to its highest since August. The Huawei hiatus and M&A activity pushed Europe’s tech sector to a one-year peak.Central bank umbrella group, the Bank for International Settlements, had urged top central banks at the weekend to preserve their ammunition rather than deplete it chasing higher growth.
The official Purchasing Managers’ Index held at 49.4 in June, just missing forecasts, while the Caixin/Markit PMI dropped to 49.4, the worst reading since January.