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Stocks - U.S. Futures Rise on Central Bank Rate Cuts, Stable Yuan

Published 08/07/2019, 06:43 AM
Updated 08/07/2019, 06:46 AM
© Reuters.
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Investing.com - U.S. futures rose on Wednesday after a trio of central bank rate cuts, while the dollar made only modest gains against the yuan as rhetoric over U.S.-China trade tensions calmed down.

Policymakers around the world have moved towards easing monetary policy as the U.S.-China trade conflict has slowed the global economy.

New Zealand’s central bank unexpectedly cut its benchmark policy rate to an all-time low, while the central banks of India and Thailand also cut rates due to slowing economic growth.

Nasdaq 100 futures rose 44 points or 0.6% by 6:42 AM ET (10:42 GMT), while Dow futures rallied 91 points or 0.4% and S&P 500 futures gained 10 points or 0.4%.

The People’s Bank of China set its official yuan rate at a decade low, but still kept it below the symbolically-important level of 7 to the dollar, at 6.9996. The offshore yuan has steadied over the last two days, with USD/CNH up 0.3% on Wednesday to 7.0755.

Walt Disney (NYSE:DIS) slumped 3.1% in premarket trade after its fiscal third-quarter earnings missed estimates due to the costs of integrating Fox’s entertainment assets. The company also announced a bundled streaming service of Disney, ESPN and Hulu for $12.99 a month. Streaming giant Netflix (NASDAQ:NFLX) was up slightly after the news, rising 0.7%.

Luxury car company Tesla (NASDAQ:TSLA) dipped 0.5% after Bloomberg reported that the U.S. National Highway Traffic Safety Administration is scrutinizing the company for not complying with its Model 3 safety guidelines.

Match Group (NASDAQ:MTCH) soared 18.1% after the online dating company beat Wall Street forecasts for its second-quarter earnings, while Weight Watchers (NASDAQ:WW) jumped 28.5% after it also reported higher-than-expected results.

In commodities, crude oil fell 0.2% to $53.52 a barrel. Gold futures jumped 1.2% to a new six-year high of $1,503.25 a troy ounce before retracing slightly, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.1% to 97.507.

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