Stocks close mixed as China deal concerns weigh - 12.11.2019

Dollar strengthening halts

US stocks ended slightly lower on Monday as China deal doubts took over after President Trump’s denial over the weekend the US and China had agreed to roll back tariffs. The S&P 500 finished 0.2% lower at 3087.01. Dow Jones industrial however added 0.04% to new record 27691.49 led by 4.6% rally in Boeing after the plane maker announced it expected the grounded 737 Max fleet to return to commercial service in January. The Nasdaq composite slipped 0.1% to 8464.27. The dollar strengthening halted as Boston Fed President Eric Rosengren proposed increasing capital buffers for large banks globally. 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 98.21 but is higher currently. Futures on US stock indices point to higher openings.

CAC 40 gains while other European indexes slip

European stock indexes closed mixed on Monday with mixed data providing little support. Both EUR/USD and GBP/USD turned higher yesterday with both pairs climbing currently against the background of reports Trump would announce this week that he is delaying a decision on whether to slap tariffs on imported European Union autos for another six months. The Stoxx Europe 600 index ended virtually unchanged while basic resource shares slid 1.6% as data revealed Italy’s industrial output fell 0.4% in September after 0.4% growth in August. The DAX 30 lost 0.2% to 13198.37. France’s CAC 40 however rose 0.1% and UK’s FTSE 100 fell 0.4% to 7328.54 despite report UK GDP grew by 0.3% in the third quarter.

Nikkei rebound leads Asian indexes gains

Asian stock indices are also mixed today with no new development in US-China trade talks. Nikkei rebounded 0.8% to 23520.01 as yen slide against the dollar resumed. Markets in China are rising despite continuing violent protests in Hong Kong. The Shanghai Composite Index is up 0.2% and Hong Kong’s Hang Seng Index is 0.4% higher. Australia’s All Ordinaries Index turned 0.3% lower as Australian dollar resumed its climb against the greenback.

Brent up

Brent futures prices are recovering today. Prices fell yesterday: January Brent crude closed 0.5% lower at $62.18 a barrel on Monday.