Stocks poised to rise at opening bell
U.S. stock futures were rallying early Monday as market participants kept an eye on trade developments.
On Saturday, China’s official Xinhua News Agency reported that Vice Premier Liu He had spoken on phone with U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, and had “constructive discussions” to address each side’s key concerns regarding the phase one deal.
The report said that the phone call was held at the request of the U.S. trade negotiators, and the two sides agreed to stay in close communication.
At 4:35 a.m. ET, the blue-chip Dow futures indicated a gain of 60.5 points, or 0.22% to 28,013.5. The S&P 500 futures advanced 4.87 points, or 0.16% to 3,123.12 while the tech-heavy Nasdaq 100 futures were up 0.05 points, or 0.09% to 57.88.
China’s central bank trims short-term funding rate to 2.5%
Meanwhile, the People’s Bank of China (PBOC) has slashed its seven-day reverse repurchase rate for the first time since October 2015, in a move aimed at reviving the slowing economy and improving market confidence.
The central bank cut the rate by five basis points to 2.50% from 2.55% early Monday, raising hopes of more supportive measures to prop up the economy.
HP rejects Xerox’s acquisition offer
Elsewhere, HP (NYSE: HPQ) board of directors unanimously rejected a bid from Xerox (NYSE: XRX) to acquire the company. They said they believe the offer “significantly undervalues HP and is not in the best interests of HP shareholders.”
Xerox submitted the unsolicited proposal earlier this month. If successful, Xerox would have acquired HP for $22 per share, or $33.5 billion.
Last week, billionaire investor Carl Icahn who holds a 4.24% stake in HP and a 10.6% stake in Xerox, said a deal between the two companies would make sense for shareholders.
Saudi Aramco reportedly cancels European investor roadshow
Saudi Aramco has called off an investor roadshow scheduled for this week in London ahead of its eagerly-awaited initial public offering, according to a Financial Times report. The company has also canceled similar events in the U.S. and Asia.
Sources familiar with the matter, who asked not be named because it was not a public event to the publication the oil giant will now mainly target wealthy Saudi families and local investors.
Saudi Aramco revealed on Sunday that the offering would value it at between $1.6 trillion and $1.7 trillion, compared to the $2 trillion that Saudi Arabia’s Crown Prince Mohammed bin Salman had been targeting.
