Nasdaq notches back to back record - 20.2.2020

Technology leads US stocks rebound

US stock market closed at record highs again on Wednesday on upbeat reports. Minutes from the Federal Reserve’s January meeting showed that Fed officials believed the US economy appeared stronger in late January than expected. The S&P 500 advanced 0.5% to fresh record 3386.15. The Dow Jones industrial average gained 0.4% to 29348.03. Nasdaq rose 0.9% to new record 9817.18. The dollar strengthening was intact as US producer prices jumped 0.5% in January, its biggest increase in 15 months. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.2% to 99.59 and is higher currently. Futures on stock indexes point to higher openings today.

FTSE 100 led European indexes recovery

European stocks ended higher on Wednesday. EUR/USD reversed higher yesterday while GBP/USD accelerated its decline with both pairs lower currently. The Stoxx Europe 600 ended up 0.8% led by technology shares as EU opened a 12-week period of discussion aimed at better understanding how to protect EU citizens from what it describes as the negative impacts of AI. Germany’s DAX 30 rose 0.8% to 13789. France’s CAC 40 advanced 0.9% while UK’s FTSE 100 gained 1.1% to 7457.02 as UK inflation unexpectedly hit a six-month high of 1.8% in January

GB100 closing above MA(200) 2/20/2020 Market Overview IFC Markets chart

Shanghai Composite leads Asian indexes recovery

Asian stock indices are mostly higher today as new cases of coronavirus infection in China reported over the last 24 hours declined for a second day. Nikkei added 0.3% to 23479.15 as yen continued sliding against the dollar. Markets in China are mixed as the central bank of China cut its benchmark one-year loan prime rate by 10 basis points: Shanghai Composite Index is 1.8% higher while Hong Kong’s Hang Seng Index is down 0.3%. Australia’s All Ordinaries Index extended gains 0.3% as Australian dollar accelerated its decline against the greenback.

Brent up

Brent futures prices are higher today despite the American Petroleum Institute industry group report yesterday US crude stocks rose by 4.16 million barrels last week. Prices rose as US imposed sanctions on trading brokerage of Russian oil giant Rosneft: April Brent added 2.4% to $59.12 on Wednesday.