North Korea remarks; earning optimism in US stocks
New York (Reuters): US stocks futures pointed to a higher opening on Tuesday on the prospect of talks between North Korea and the United States and increasing friction to President Donald Trump’s proposed metals tariffs.
The news added to early gains for US markets, which have been recovering from a bout of concern over the possibility of a global trade war following remarks by Trump last week.
North and South Korea will hold their first summit in more than a decade in late April, the South’s presidential office said on Tuesday, adding that North Korea was open to talking with the United States regarding denuclearization and normalizing ties.
“Of course, the North Korea news is basically what’s extending yesterday’s rally,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
“There’s also a lot of pressure regarding the tariff – not only GOP, trading partners but also many business leaders in the United States.”
Investor fears were eased after Trump’s threat of hefty tariffs on aluminum and steel was seen as a negotiating tool following his tweet that Canada and Mexico could avoid the tariffs if they ceded ground in the North American Free Trade Agreement (NAFTA) talks.
Top US Republicans, including House Speaker Paul Ryan, urged Trump on Monday not to go ahead with the tariffs.
Federal Reserve Bank of New York President William Dudley and Federal Reserve Bank of Dallas President Robert Kaplan are due to speak at different events on Tuesday.
Focus will also be on the upcoming February jobs data due on Friday that will show the strength of the labor market.