US futures gain on US-China trade deal optimism, as Fed continues pumping cash in.

The US equity futures kicked off the week on a positive note, as the Federal Reserve (Fed) announced further overnight repo operations to release the pressure on short-term borrowing costs, in addition to renewed optimism regarding the US China trade talks which could eventually lead to an interim deal.

But there might be a mounting tension in China when it comes to Donald Trumps request from Chinese companies to buy US farm products. Though a Chinese newspaper said that the Chinese visit to the US farmlands had nothing to do with the trade discussions, those who have closely followed the recent talks could tell that this weeks visit may have been encouraged by a goodwill action amid Trump accused Xi of not being true to his word after he apparently promised his peer to purchase US farm products at the latest G20 meeting, and put new tariffs on Chinese imports on Chinas failure to do so.

Elsewhere, oil and energy stocks advance as Aramco recovery could take longer than thought.

Cable trades near 1.25 ahead of this weeks Brexit negotiations in NY and Supreme Court decision.

US and Eurozone PMIs in focus, as Fed continues pumping liquidity to ease fears of renewed jump in short-term borrowing costs.

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Opening calls

FTSE to open 3 points lower at 7342

DAX to open 30 points lower at 12438