SP500 notches third straight record high on deal optimism - 17.12.2019

Dollar weakening resumes on manufacturing PMI decline

US stocks record run continued on Monday as phase one trade deal optimism supported investors‘ risk appetite. The S&P 500 advanced 0.7% to third consecutive record at 3191.45. Dow Jones industrial added 0.4% to 28235.89. The Nasdaq rallied 0.9% to fresh record 8814.23. The dollar weakening resumed after Markit’s manufacturing PMI ticked down to 52.5 in December from 52.6, but the services sector gauge came in at 52.2 from 51.6. 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, slipped 0.1% to 97.12 and is lower currently. Futures on US stock indices point to higher openings today.

FTSE 100 led European indexes gains as Conservative won elections

European stock markets advance continued on Monday. The EUR/USD reversed its decline yesterday while GBP/USD continued its slide with no change in both pairs dynamics currently. The Stoxx Europe 600 index rose 1.5% to new record led by basic resources stocks. The DAX 30 gained 0.9% to 13407.66 despite a report euro-zone manufacturing PMI came in at below expected 45.9 after 46.9 in November. France’s CAC 40 rose 1.2% while UK’s FTSE 100 rallied 2.3% to 7519.05 despite report UK composite PMI hit the lowest level in December since mid-2016.

EU50 rising in channel 12/17/2019 Market Overview IFC Markets chart

Shanghai Composite Index leads Asian indexes gains

Asian stock indices joined global rally unleashed by US-China phase one deal news. Nikkei rose 0.5% to 24066.12 despite yen’s resumed climb against the dollar. Markets in China are advancing after data showed factory activity and retail sales in the world’s second-largest economy were better than expected in November: the Shanghai Composite Index is up 1.3% and Hong Kong’s Hang Seng Index is 1% higher. Australia’s All Ordinaries Index however slipped 0.1% as Australian dollar reversed its climb against the greenback.

Brent down

Brent futures prices are edging lower today. Prices gained yesterday after trade deal optimism: February Brent crude closed 0.2% higher at $65.34 a barrel on Monday. Saudi Aramco ‘s IPO continues on the country’s Tadawul exchange. And the stock will soon be available to overseas buyers too through the iShares MSCI Saudi Arabia ETF KSA. It is the only single-country exchange-traded fund for Saudi stocks, managed by BlackRock. The ETF tracks a group of companies called the MSCI Saudi Arabia IMI 25/50 Index, measuring the performance of the large, mid and small-cap segments of the Saudi market. Saudi Aramco is expected to meet the minimum market cap requirement for early inclusion in the ETF by Tuesday, which would make it available for trading on Wednesday.