US index futures are pointing towards a little changed start to the week’s trade. Rhetoric between Washington and Beijing continues to mount ahead of the G20 summit at the end of the week. Some time back this was expected to see a conclusion drawn to the Trans-Pacific trade spat, but now it seems as if only a brief side meeting will be held between the US and Chinese leaders.
Given the latest tone from Beijing, there’s no suggestion that China will back down quickly in its demands for a reasonable compromise and this could well serve to weigh on stocks in the longer term.
The potential escalation of military activity between the US and Iran is also likely keeping a lid on gains for now, although the upside pressure on oil prices could see upside for petrochemicals stocks which in turn has the potential to buoy the wider index. Economic data is thin on the ground although the Dallas Fed’s manufacturing activity index is set for release and in the absence of other indicators, any surprises here could inject a little fresh volatility shortly after the market open.
Geopolitical factors look set to dominate in the near term, with macroeconomic drivers on the back foot.
Ahead of the open the market is calling the Dow to open up 17 at 26736 and the S&P 500 up 2 at 2952.