US stocks notch back to back records after deal news - 16.12.2019

Dollar weakening halted

US stocks eked out fresh records on Friday after announcement of a phase one trade deal. The S&P 500 inched up 0.01% to new record 3168.80, gaining 0.7% for the week. Dow Jones industrial added 0.01% to 280135.38. The Nasdaq rose 0.2% to 8734.88. The dollar weakening reversed despite weaker than expected retail sales data showing sales rose just 0.2% on month in November. 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, rose 0.5% to 97.18 but is lower currently. Futures on US stock indices point to sharply higher openings today.

Washington will keep 25% tariffs on approximately $250 billion of Chinese imports, and cut in half the 15% tariffs on approximately $120 billion of Chinese implemented on September 1. The tariffs planned to be imposed on more than $150 billion in annual consumer goods on December 15 were removed. China will increase US agricultural purchases by $32 billion from previous levels over a two-year period to $40 billion annually, with an aim toward $50 billion.

FTSE 100 led European indexes gains as Conservative won elections

European stock markets ended solidly higher on Friday after US-China trade deal news. Both the GBP/USD and EUR/USD turned lower on Friday with both pairs gaining currently. The Stoxx Europe 600 Index gained 1.1% with travel and leisure shares leading advancers. The DAX 30 added 0.5% Friday to 13282.72. France’s CAC 40 advanced 0.6% and UK’s FTSE 100 rose 1.1% to 7353.44 as Prime Minister Boris Johnson’s Conservative Party won a decisive majority in the country’s general election.

GB100 testing resistance 12/16/2019 Market Overview IFC Markets chart

Australia’s All Ordinaries Index leads Asian Indexes gains

Asian stock indices are mixed today. Nikkei ended 0.3% lower at 23952.35 despite yen’s resumed slide against the dollar. China’s markets are mixed as Beijing said Sunday it would postpone punitive tariffs against US-made autos and other goods following the trade agreement: the Shanghai Composite Index is 0.6% higher while Hong Kong’s Hang Seng Index is down 0.5%. Australia’s All Ordinaries Index rallied 1.6% despite Australian dollar’s resumed climb against the greenback.

Brent down

Brent futures prices are pulling back today. Prices hit 3-month high on Friday: Brent for February settlement gained 1.6% to $65.22 a barrel Friday. Saudi Aramco shares gained for a third consecutive day on Sunday, rising 1.63%. Aramco stock valuation hit a $2 Trillion Thursday. Saudi Arabia’s giant state-owned oil company listed 1.5% of its shares on Riyadh’s Tadawul exchange on December 11 in the world’s largest initial public offering (IPO). Additional demand, especially from “passive” investors, is expected this week, as Aramco’s shares will join the Tadawul index and global benchmarks such as MSCI.

Gold down

Gold prices are retreating today. Prices edged higher on Friday despite news China and the US reached a phase one trade deal. February gold gained 0.6% to $1481.20 an ounce Friday.