US equity futures have shown a notable increase ahead of Friday's opening bell, driven by growing optimism that US lawmakers will introduce a stopgap funding measure to avert a potential government shutdown. The Dow Jones Industrial Average futures surged by 0.6%, while S&P 500 futures rose by 1%, and Nasdaq futures saw an increase of 1.3%.
This positive momentum in the equity market comes after Senate Democratic Leader Chuck Schumer indicated his support for the Republican-led stopgap funding bill, as reported by various media outlets. In the commodities market, oil prices experienced an upward trajectory, with front-month global benchmark North Sea Brent crude climbing 0.9% to $70.52 per barrel.
Simultaneously, US West Texas Intermediate crude also saw a 0.9% increase, reaching $67.16 per barrel. The anticipated consumer sentiment index for the US, scheduled for release at 10 am ET, is projected to decline to 63.1 in its preliminary report for March, down from 64.7 in February, according to Bloomberg's estimates. Internationally, markets reflected an overall positive trend.
Japan's Nikkei closed 0.7% higher, the Hang Seng Index in Hong Kong ended the day up by 2.1%, and China’s Shanghai Composite finished 1.8% higher. In Europe, the UK's FTSE 100 gained 0.8%, while Germany’s DAX index experienced a rise of 1.8% during the early afternoon trading session. Within the realm of equity markets, shares of RLX Technology ($RLX) surged 6% in pre-market trading following the company's announcement of higher revenue for the fourth quarter.
Radius Recycling ($RDUS) shares saw an astonishing increase of over 100%, following news that the company had agreed to be acquired by Toyota Tsusho America at a price of $30 per share. On the flip side, Xponential Fitness ($XPOF) shares faced a significant drop of 28%, just a day after the company reported a wider-than-expected loss in Q4 and falling revenue figures. In summary, the stock market exhibits a blend of confidence in forthcoming legislative action alongside notable movements in individual company stocks, highlighting the ongoing dynamism within the financial landscape..