U.S. equity futures climbed with European stocks on signs of strength in the housing market. A U.S. dollar gauge slid to the lowest since 2018. Home Depot Inc. rose in pre-market trading after reporting sales growth that was more than double analyst estimates as Americans opened their wallets for home improvement.
In the Stoxx Europe 600 Index, U.K. homebuilder Persimmon Plc was among the biggest gainers after sales reservations increased. Treasuries edged higher and gold climbed back above $2,000 an ounce. Iron ore futures rallied to highest since 2014. Investors will get further hints on the state of the U.S. housing market when July housing starts data is published later on Tuesday.
Meanwhile, traders remain preoccupied with the prospect for more government stimulus. Democrats and Republicans have been deadlocked in negotiations over a stimulus package and the S&P 500 has stalled just below its February closing record.
“A lot of investment professionals as well as retail investors are on the sidelines partially because they are waiting for this second stimulus package,” Erin Gibbs, president and chief investment officer at Gibbs Wealth Management, said on Bloomberg TV. “It’s not a full-on risk-on environment just yet.”