Stocks renew records after Trump signs phase one deal - 16.1.2020

Dollar weakening intact

US stock market edged up to new records on Wednesday after President Trump signed the first phase of a trade agreement with China. The S&P 500 gained 0.2% to fresh record 3289.29. The Dow Jones industrial average rose 0.3% to new record 29030.22. Nasdaq added 0.1% 9258.70. The dollar strengthening reversed as the Labor Department reported US producer-price index rose below expected 0.1% in December. 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, declined 0.2% to 97.19 and is lower currently. Futures in stock indexes point to higher openings today.

FTSE 100 rose while other European indexes slipped

European stocks ended marginally higher on Wednesday ahead of US-China phase one deal signing. EUR/USD joined GBP/USD’s continued slide with both pairs lower currently. The Stoxx Europe 600 ended up 0.01% led utilities stocks. Germany’s DAX 30 declined 0.2% to 13432.30 despite. France’s CAC 40 slipped 0.1% while UK’s FTSE 100 rose 0.3% to 7642.80.

Australia’s All Ordinaries Index still ahead other Asian indexes

Asian stock indices are mostly higher today after US and China signed the interim phase one trade deal. Nikkei added 0.1% to 23933.13 as yen slide against the dollar resumed. Chinese stocks are mixed after vice premier Liu He signed the phase one deal in Washington committing to increase purchases of U.S. agricultural and other products, by more than $200 billion over the next two years, though “at market prices based on commercial considerations.”: the Shanghai Composite Index is down 0.5% while Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index added 0.7% with Australian dollar climb against the greenback intact.

Saudi Aramco shares echo Brent decline

Brent futures prices are extending losses today. Prices slipped on Wednesday despite EIA report US crude oil inventories fell by 2.5 million barrels last week. As shares of Saudi Aramco are trading on the country’s Tadawul exchange. JPMorgan rated Saudi Aramco “overweight,” setting a price target of 37 riyals ($9.86) per share. At the same time Citigroup gave Aramco a neutral rating with a price target of 34.1 Saudi riyals. Meantime Morgan Stanley rated Saudi Aramco as “underweight.” And Goldman Sachs issued Saudi Aramco a 12-month price target of 41 riyals a share, implying a potential 18% upside.

Gold retreats after rebound

Gold prices are edging lower after Wednesday’s pickup. The price of an ounce of gold for February delivery rebounded 0.6% to $1,554 Wednesday as the dollar strengthening reversed.