Stocks notch new records buoyed by trade hopes - 26.11.2019

Dollar strengthening unabated

US stocks march to records was intact on Monday with investor optimism buoyed by US national security adviser Robert O’Brien Saturday comment that a “phase-one” deal between the US and China by the end of the year still appeared possible. The S&P 500 finished 0.75% higher at new record 3133.64. Dow Jones industrial advanced 0.7% to new record 28066.47. The Nasdaq rallied 1.3% to 8632.49. The dollar strengthening slowed as the Chicago Fed’s national activity index for October fell to a reading of negative 0.71, from negative 0.45 in the previous month. 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, added 0.05% to 98.28 and is higher currently. Futures on US stock indices point to higher openings.

FTSE 100 still ahead other European indexes

European stock indexes extended gains on Monday with positive German data providing their support. The slide of EUR/USD was intact while GBP/USD turned higher yesterday with both pairs reversing currently. The Stoxx Europe 600 index ended 1.1% higher led by travel and leisure shares up 2.0%. The DAX 30 gained 0.6% to 13246.45 as Ifo business climate index’s gain indicated German business sentiment improved in November. France’s CAC 40 advanced 0.5% while UK’s FTSE 100 rose 0.95% to 7396.29.

Australia’s All Ordinaries Index leads Asian indexes gains

Asian stock indices are mostly higher today. Nikkei extended gains 0.4% to 23373.32 as yen’s decline against the dollar slowed. Markets in China are mixed after Beijing announced new stronger guidelines for protecting intellectual property rights. The Shanghai Composite Index is up 0.1% and Hong Kong’s Hang Seng Index is 0.1% lower. Australia’s All Ordinaries Index added 0.8% despite resumed Australian dollar’s climb against the greenback.

AU200 rising above MA(50) 11/26/2019 Market Overview IFC Markets chart