US stocks recover as upbeat earnings offset coronavirus fears - 31.1.2020

Dollar strengthening continues

US stock market recovered on Thursday as positive corporate reports offset concerns over coronavirus infection in China. The S&P 500 gained 0.3% to 3283.66. The Dow Jones industrial average rose 0.4% to 28859.44. Nasdaq composite index added 0.3% to 9298.93. The dollar strengthening halted despite report US gross domestic product grew at stead 2.1% annualized pace in the fourth quarter and the number of people applying for first time jobless benefits fell by 7,000 to 216,000 last week: live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lostg 0.2% to 97.86 but is higher currently. Futures on stock indexes point to mixed openings today.

European indexes retreated in lockstep

European stocks pulled back on Thursday. Both the GBP/USD and EUR/USD reversed their sliding yesterday with euro turning lower while Pound higher currently still. The Stoxx Europe 600 index declined 1% led by energy shares. Germany’s DAX 30 fell 1.4% to 13157.12. France’s CAC 40 lost 1.4% while UK’s FTSE 100 slumped 1.4% to 7381.96 as the Bank of England kept the base rate at 0.75%.

EU50 falling below MA(50) 1/31/2020 Market Overview IFC Markets chart

Nikkei ahead of Asian indexes

Asian stock indices are mixed today after the World Health Organization declared the outbreak to be a global health emergency. Nikkei ended up 1% at 23205.18 with yen resuming its decline against dollar. Markets in mainland China are closed for extended Lunar New Year holidays. Hong Kong’s Hang Seng Index is 0.1% lower despite report China's official nonmanufacturing PMI edged up. Australia’s All Ordinaries Index recovered 0.1% as Australian dollar decline against the greenback continued.

Brent down

Brent futures prices are extending losses today. Prices ended lower yesterday: March Brent crude lost 2.5% to $58.29 a barrel on Thursday. Saudi Aramco shares closed 0.7% lower Thursday at 34.15 riyals in Riyadh at Tadawul exchange. Yesterday a Saudi oil official said Yemen’s Houthi rebels launched a missile attack on Saudi Aramco, but all projectiles were intercepted before they could hit their target in the southern Jazan region. No date was specified for the attack.