The protests in Hong Kong stopped the growth of stocks

13/11/2019

The strengthening of the dollar continues

US stocks resumed their growth on Tuesday. During the trading day the indices S&P 500 (+0,16%) и Nasdaq (+0,26%) (+0,26%) updated historic maximums, but their closure was not too high. The index Dow Jones Industrial Average did not change after the end of the trading day. The main positive was another statement by US President Donald Trump that the United States and China are close to signing the "first phase" of a trade deal. The leader in yesterday's growth was the "healthcare" sector, and the leader in the terms of decline was the "real estate" sector. The reporting season for the 3rd quarter is near to the conclusion. So far, it is expected that the total profit of the S&P 500 500 will decrease by its results by 0.5% after rapid growth in the 1st and 2nd quarters. This is a preliminary estimate, as big companies such as Walmart, Nvidia and Cisco Systems yet need to report this week. Today the US Dollar Index ICE is growing for the second day in a row, awaiting the publication of US inflation data for October tonight.

The European stocks indices returned again to 4-year highs

The European stocks rose Tuesday due to the publication of a positive review of investor activity in Germany (ZEW Survey) and due to the good corporate reporting. The DAX 30 index rose on 0.6% up to a 22-months maximum. Currently the Stoxx Europe 600 index is lower only 2% below its historical maximum, achieved on April 2015. However, today the European stock indices are still trading in the minus, because the investors are worried about increased protests in Hong Kong and fear of the delays between USA and China trade negotiations. The leaders in the decline are the banking and automotive sectors. The rate of the EUR/USD is continuing to decline and reached the psychological level at 1.1.

11/13/2019 Market Overview IFC Markets chart

Hang Seng falls for the 4th day in a row

Asian stock indices are mostly declining today after reports on the increased protests in Hong Kong. On Tuesday, the Nikkei grew nearly a percent on weaker yen up to 5-month minimum against the US dollar. The investors hope that the weak yen will support Japanese exporting companies. The stocks electronics manufacturers Sony and Advantest rose on 1.3% and 3.5%. Today, Nikkei dropped alongside with other European stock indices. From its local, 7-month minimum in August, it grew by 17% and some investors are expecting the correction.

Brent fell 3rd day in a row.

Brent futures price is lower today. The investors are disappointed that US President did not announce the date of signing of the "first phase" of the US-China trade agreement. Besides, International Energy Agency published a long-term forecast, according to which, the global demand for oil will grow by 1 million barrels per day annually until 2025. This is less than the average expected growth in global GDP. Moreover, according to the agency, after 2025, the global demand for oil will slow down to 100 thousand barrels per day annually until 2040 due to increased fuel consumption.




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