U.S. Stocks Set To Open Higher As Trade Deal With China Is In Good Shape

U.S. And China Confirm Progress On Phase 1 Trade Deal

S&P 500 futures are gaining ground in premarket trading as U.S. and China trade officials confirmed that Phase 1 trade deal was progressing well.

Not surprisingly, coronavirus pandemic put significant pressure on the implementation of the deal but it looks like China is increasing its efforts to stay in line with the original agreement.

This news is a major relief for the world markets which were worried that the continued deterioration of U.S. – China relations could jeopardize the important trade deal and hurt the world economy at a time when it tries to recover from the coronavirus shock.

Interestingly, the news has put some pressure on precious metals. Gold and silver, which have recently enjoyed a major boost from safe-haven buying, have lost momentum and are under pressure today.

Oil In Spotlight As Tropical Storm Laura May Become A Major Hurricane

Oil prices continue to get support from storm news as Tropical Storm Laura is forecasted to turn into a major hurricane.

Oil producers have already shut more than 1 million barrels per day of oil production in the U.S. Gulf of Mexico, and traders focus on whether the storm deals any damage to the existing infrastructure.

While the hurricane news are a positive catalyst for oil in the near term, oil price upside remains limited as market participants are concerned with the negative impact of COVID-19 on oil demand.

New Home Sales Are Set To Increase by 1.3%

Today, the U.S. will report New Home Sales data for July. New Home Sales are expected to grow by 1.3%, continuing the positive trend seen in June when New Home Sales increased by 13.8%.

The recent data on Building Permits and Housing Starts showed strong growth, and analysts expect that a combination of low interest rates and increased demand for living space amidst the pandemic will coninue to push New Home Sales higher.

A better-than-expected New Home Sales report will likely provide additional support to stocks which are eager to rise on any good news as the current upside trend remains very strong.

For a look at all of today’s economic events, check out our economic calendar.