Investing.com - Here are the top five things you need to know in financial markets on Friday, September 21:
1. U.S. futures point to another record high
As surging tech stocks and fading concerns about trade pushed the Dow to a record close a day earlier, U.S. futures pointed to a continuation of the upward trend. At 5:55 AM ET (9:55 GMT), the blue-chip Dow futures rose 40 points, or 0.15%, S&P 500 futures gained 2 points, or 0.07%, while the Nasdaq 100 futures traded up 10 points, or 0.13%.
Elsewhere, European shares rose strongly nearing midday trade on Friday, extending their gains from the previous session as a relief rally due to easing fears of a trade war helped Wall Street hit record highs. The benchmark Euro Stoxx 50 gained 0.7%.
Earlier, Asian stocks were boosted by the positive performance in New York. Japan’s Nikkei 225 rose 0.9%, while China’s Shanghai Composite soared 2.5%.
2. U.S. private sector activity expected to improve
Although the calendar is relatively empty, investors will still get some economic data shortly after the opening bell.
IHS Markit will release its measure of U.S. manufacturing and services activity at 9:45 AM ET (13:45 GMT).
Economists expect that the preliminary September manufacturing PMI rose to 55.0 from the month before, with the services PMI also edging up to 55.0.
3. Dollar struggles near 3-month low
While waiting for the data, the dollar pulled off a three-month low hit earlier on Friday.
At 5:56AM ET (9:56 GMT), the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.10% at 93.56, pulling off 93.39 hit overnight, its lowest level since June 14.
The index has fallen more than 1% this week, with investor flows being diverted from the greenback to other currencies including emerging market ones amid an ebb in U.S.-China trade war concerns.
Traders already have one eye on the Federal Reserve policy meeting next week.
While a rate hike is a foregone conclusion, markets will watch the Fed’s economic projections to see its forecasts for interest rates, particularly in 2019.
4. Oil heads higher ahead of OPEC meeting, U.S. rig count
Oil traded higher on Friday as investors looked ahead to a meeting of the Organization of Petroleum Exporting Countries and the latest weekly measure of U.S. drilling activity.
U.S. crude oil futures gained 0.65% to $70.78 by 5:57 AM ET (9:57 GMT), while Brent oil traded up 0.91% to $79.42.
OPEC and its allies are scheduled to meet on Sunday in Algeria to discuss how to allocate supply increases to offset a shortage of Iran supplies due to U.S. sanctions.
At 1:00 PM ET (17:00 GMT) Friday, Baker Hughes will release its U.S. rig count, an early indicator of future output.
It rose by 7 to 867 last week, hovering near its highest levels since March 2015.
5. Pound drops amid renewed fears of no-deal Brexit
The pound headed lower against the dollar on Friday, pulling away from a two-month high as concerns resurfaced that the UK will exit the European Union without a deal.
EU leaders rejected UK Prime Minister Theresa May’s plan for leaving the economic bloc and warned that time was running short.
Sterling was still on track for a second consecutive weekly gain as positive inflation and retail sales data had boosted the currency.