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US STOCKS-Wall St set to open higher on trade deal hopes; tariff deadline closes in

Published 13/12/2019, 15:02
© Reuters.  US STOCKS-Wall St set to open higher on trade deal hopes; tariff deadline closes in
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* Washington sets China trade deal terms - sources

* China to hold press briefing at 9:30 a.m. ET

* U.S., Chinese tariffs to take effect on Dec. 15

* Adobe rises after Q4 revenue, profit beat

* Futures up: Dow 0.37%, S&P 500 0.32%, Nasdaq 0.42%

(Adds comments, updates price action)

By Shreyashi Sanyal

Dec 13 (Reuters) - Wall Street was set to open higher on

Friday on hopes that the United States and China would reach an

initial deal to end their trade war after Washington set its

terms for an agreement, just days before fresh levies on Chinese

goods kick in.

The United States has offered to suspend some tariffs on

Chinese imports and cut others in exchange for Beijing's buying

more American farm goods, U.S. sources said, although there has

been no official announcement on the deal from either side.

China will give a news briefing at 10:30 p.m. local time

(9:30 a.m. ET) on the state of trade discussions with the United

States, China's State Council Information Office said on Friday.

The new round of tit-for-tat tariffs takes effect on Sunday.

"Markets look set to build on gains with more record levels

as optimism grows that two of the major sores on the global

economy may be closer to coming to some form of resolution,"

said Michael Hewson, chief market analyst at CMC Markets in

London.

"While this is welcome news, it doesn't appear that China is

completely on board."

A positive tone on trade helped Wall Street's main indexes

touch record levels on Thursday, while futures hit all-time

highs earlier in the session on Friday.

The S&P 500 index .SPX is also up more than 26% in 2019,

putting it on track for its best annual performance in six

years, helped by interest rate cuts and some relief in corporate

profits.

Shares of chipmakers that are heavily exposed to China for

revenue were up in premarket trading. Micron Technology Inc

MU.O , Advanced Micro Devices Inc AMD.O and Nvidia Corp

NVDA.O rose between 1.2% and 2%.

Apple Inc AAPL.O , often considered sensitive to news

around trade, also edged up 0.6%.

Broadcom Inc AVGO.O dropped 1.5% as analysts were wary of

the chipmaker's revenue forecast for 2020. At 8:39 a.m. ET, Dow e-minis 1YMcv1 were up 104 points, or

0.37%. S&P 500 e-minis EScv1 were up 10 points, or 0.32% and

Nasdaq 100 e-minis NQcv1 were up 35.75 points, or 0.42%.

Adobe Inc ADBE.O rose 2.6% after the company beat

analysts' estimates for fourth-quarter revenue and profit.

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