U.S. Index Futures Rise as Relief Package Buoys Risk-on Rally

Future contracts on U.S. equity indexes rise, mirroring gains in European and Asian shares, after President Donald Trump signed a pandemic relief bill.

S&P 500 contracts were up 0.7%, while Dow contracts gained 0.5%. Shares in American Airlines Inc. and cruise operator Carnival Corp. rose in U.S. pre-market trading, while stocks with cryptocurrency exposure also rallied ahead of the open as Bitcoin headed for its longest monthly winning streak in more than a year after touching an intraday record above $28,000 over the weekend.

In Europe, the Stoxx 600 Index rose 0.6%, with Germany’s DAX hitting a record high, in the first trading session after the European Union and the U.K. reached a final agreement on Brexit terms. While the British market is closed for a holiday, U.K. shares rose in trading on Germany’s Tradegate exchange.

MARKETS:

  • E-Mini futures on S&P up 0.7%
  • E-Mini futures on Dow Jones up 0.5%
  • E-Mini futures on Nasdaq 0.6% higher
  • VIX Index trading 1.8% higher
  • WTI crude futures up 1.2% to $48.8/bbl
  • Bloomberg spot dollar index down 0.2%

ECONOMIC DATA:

  • 10:30 – Dec. Dallas Fed Manf. Activity est. 11.0 (prior 12.0)

POLITICS:

  • President Donald Trump backed away from a crisis of his own making by signing a pandemic relief bill Sunday night, but only after depriving millions of Americans of a week of unemployment aid and triggering an outcry from lawmakers in both political parties.
  • China is lagging behind its U.S. trade-deal commitments, with the latest data showing it’s imported just over half of the American goods it promised to buy in the first year of the phase-one agreement. As of the end of November, China purchased 54.1% of targeted manufactured products, 52.9% of agricultural goods and 31.1% of energy products

EARNINGS:

  • No major earnings releases scheduled

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