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US STOCKS-Wall Street set to open slightly higher on positive trade moves

Published 11/09/2019, 14:19
Updated 11/09/2019, 14:20
© Reuters.  US STOCKS-Wall Street set to open slightly higher on positive trade moves
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* Futures up: Dow 0.15%, S&P 500 0.12%, Nasdaq 0.20%

(Updates prices, adds comments)

By Uday Sampath Kumar

Sept 11 (Reuters) - Wall Street was set to open marginally

higher on Wednesday as China's move to ease tensions with the

United States assuaged some concerns about the ongoing trade war

between the world's two largest economies.

Earlier in the day, China's finance ministry said 16 types

of U.S. goods would be exempted from additional retaliatory

tariffs, ahead of a planned meeting between trade negotiators.

While the move is seen as a friendly gesture to thaw

relations with the United States, analysts are skeptical about

how much it will move the needle in resolving a trade war that

has hurt the global economy.

"The exemption could be seen as a gesture of sincerity

towards the US ahead of negotiations in October, but is probably

more a means of supporting the (Chinese) economy," Iris Pang, a

Greater China economist with ING, wrote in a note.

Comments from a senior White House adviser on Tuesday urging

investors to be patient about resolving the dispute further

downplayed expectations that a trade deal would be agreed this

year. Markets are now looking for stimulus measures from central

banks to stem a global slowdown, with the U.S. Federal Reserve

and the European Central Bank expected to cut interest rates at

their policy meetings over the next two weeks.

U.S. President Donald Trump on Wednesday renewed his attacks

on Fed Chairman Jerome Powell, saying that the central bank

should get interest rates down to "ZERO, or less."

"People will be interested to hear what is going to be said

(by the Fed) next week, so until then, barring something

unexpected, things will be quiet," said Andre Bakhos, managing

director at Janlyn Capital LLC in Bernardsville, New Jersey.

Trading in U.S. markets has been subdued this week, with

investors readjusting their portfolios and shifting profits from

outperforming sectors such as technology to those that have

underperformed, like energy and financials.

Among stocks, shares of Micron Technology Inc MU.O rose

1.5% premarket after Longbow Research upgraded its rating to

"buy". Shares of other chipmakers also ticked higher in thin

volumes. Apple Inc AAPL.O was marginally higher after the company

unveiled its latest iPhones on Tuesday and rolled out a

streaming TV service at a price that undercuts Disney DIS.N

and Netflix NFLX.O . At 9:05 a.m. ET, Dow e-minis 1YMcv1 were up 41 points, or

0.15%. S&P 500 e-minis EScv1 were up 3.5 points, or 0.12% and

Nasdaq 100 e-minis NQcv1 were up 15.75 points, or 0.2%.

Futures pared gains slightly after data showed U.S. producer

prices unexpectedly rose in August.

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