Anonymous ID: 9e569b Jan. 13, 2020, 12:46 p.m. No.7803049   🗄️.is đź”—kun   >>3085 >>3220 >>3372 >>3524

NASDAQ/SP500 hits record ahead of U.S.-China trade deal, dollar gains

 

Bond yields edged higher while a gauge of global equity markets hit a record high on Monday, lifted by optimism over the planned signing this week of a U.S.-China trade deal and hopes the start of the U.S. corporate earnings season will not disappoint. Gold prices fell almost 1% ahead of the signing at the White House on Wednesday of the Phase 1 trade deal and as a de-escalation in U.S.-Iran tensions in the Middle East reduced bullion’s safe-haven appeal.

 

U.S. and euro zone government bond yields rose as the trade deal marks a major step in ending a dispute that has cut global growth and boosted demand for such safe-haven assets as bonds, gold and currencies like the Japanese yen and Swiss franc.

 

MSCI’s gauge of stocks across the globe gained 0.45%, topping a record set Friday, while emerging market stocks rose 0.96%. The benchmark S&P 500 and tech-heavy Nasdaq composite indexes also hit fresh highs on Wall Street.

 

The United States is planning to lift its designation of China as a currency manipulator, Bloomberg reported, citing people familiar with the matter, a move that added to the positive mood among investors.

 

>>7801272 pb US To Remove China "Currency Manipulator" Designation Ahead Of Trade Deal; Yuan Jumps

 

Treasury report expected before trade deal signed on Jan. 15

 

Investors are waiting for corporate results that start in earnest this week with large U.S. banks, including Citigroup Inc, JPMorgan Chase & Co and Wells Fargo & Co due to report on Tuesday.

Excluding energy, earnings growth estimates are 1.9%, according to Refinitiv.

 

Renault SA fell to a six-year low after a media report said Japan’s Nissan Motor Co Ltd had accelerated secret contingency planning for a potential split from the French carmaker.

 

Other European automobile stocks were also down, after China’s top auto body reiterated predictions that sales were likely to shrink for the third consecutive year in 2020.

 

In currency markets, the offshore Chinese yuan hit a 5-1/2-month high and the yen dropped to a 7-1/2-month low as the planned signing of the U.S.-China trade deal boosted sentiment. The dollar index fell 0.01%, with the euro up 0.14% to $1.1136. The yen weakened 0.42% versus the greenback at 109.92 per dollar.

 

Oil prices fell about 1% as Middle East tensions eased and investors turned their focus to lackluster seasonal demand following a bearish U.S. report last week of a large increase in gasoline stocks.

 

Cap#3 is the latest CME Fedwatch odds for January 29th FOMC meeting.

Currently forecasts a 12.7% chance of a rate rise and 87.3% chance of no change.

 

https://www.reuters.com/article/us-global-markets/stocks-hit-record-ahead-of-u-s-china-trade-deal-dollar-gains-idUSKBN1ZC01B

https://finance.yahoo.com/quote/%5EIXIC?p=^IXIC

https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart

https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html