Higher Start Likely For US Markets, Oil Up

Higher opening likely for the U.S markets Monday after most stock index futures moved up in the morning, on the back of hopes of an imminent deal between the U.S. and China.

Dow futures jumped 67 points, at around 03:30 a.m. ET, indicating a positive open beyond 72 points. The S&P and Nasdaq futures were also higher.

According to reports, China has agreed to slash duties on certain American goods to lay the ground for a deal which may be signed by the top leaders.

Among corporate reports, Salesforce may report earnings on Monday.

Oil prices high

Oil prices zoomed Monday as supply tightened from the output cuts from Saudi Arabia-led OPEC.

The news of the U.S and China heading to trade deal excited the oil market as demand worries subsided. Per barrel price at International Brent futures was $65.39 at 0416 GMT, up 0.5 percent, from the last close.

At U.S. West Texas Intermediate (WTI) crude futures were $56.08 per barrel, up 0.5 percent.

“OPEC exports are off by over 1.5 million barrels per day (BPD) since November, ”Barclay's bank noted.

“The supply picture looks generally tighter this year,” added energy analysts at Fitch Solutions. It said Brent may touch $73 per barrel in 2019.

The U.S. sanctions against Iran and Venezuela also led to a reduction of at least 2 million BPD in the global crude supply. There are also signs that the U.S oil production may come down as U.S. energy firms are cutting the number of oil rigs for new reserves.

Asian stocks rise

Meanwhile, Asian stocks, especially mainland China stock markets boomed Monday following reports of a deal between the U.S and China.

The Shanghai Composite rose 1.12 percent while the Shenzhen composite added 2.214 percent. Hong Kong’s Hang Seng index was also 0.7 percent up in its final hour of trading.

Japan’s Nikkei 225 moved up 1.02 percent; Topix was 0.73 percent up. Australia’s ASX 200 too rose 0.4 percent. But South Korea’s Kospi closed 0.22 percent lower.

In Europe, Stoxx 600 jumped 0.3 percent higher with most sectors positive. Basic resources stocks emerged as top performers.