Nasdaq notches fifth straight record close - 19.12.2019

Dollar strengthening halts

US stocks ended mixed on Wednesday after five-session record run as US-China deal euphoria abates. The S&P 500 slipped 0.04% to 3191.14 ahead of impeachment proceedings against President Donald Trump led by House Democrats. The Dow Jones industrial average slid 0.1% to 28239.28. Nasdaq gained 0.05% to fifth-straight record close 8827.73. The dollar strengthening accelerated as New York Fed President John Williams qualified as success central bank’s actions in repo market in the aftermath of a sudden spike in short-term borrowing costs in mid-September. 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 0.2% to 97.40 but is lower currently. Futures on US stock indices point to higher openings today.

European stocks end mixed

European stock markets ended mixed on Wednesday as investors gauge the prospect of no-deal Brexit following UK Prime Minister Boris Johnson’s vow to leave the bloc by January 31, 2020. EUR/USD joined GBP/USD’s continued decline yesterday with both pairs higher currently. The Stoxx Europe 600 ended flat. Germany’s DAX 30 fell 0.5% to 13222.16 despite a report showing higher than expected German Ifo business sentiment for December. France’s CAC 40 slid 0.2% and UK’s FTSE 100 rose 0.2% to 7540.75 as UK inflation held steady at a three-year low of 1.5% in November.

Shanghai Composite flat while Hang Seng dips

Asian stock indices are mixed today after US House of Representatives voted to impeach President Donald Trump, with Senate’s turn now for trial. Republicans who control Senate say they plan to acquit him. Nikkei lost 0.3% to 23864.85 with yen little changed against the dollar after the Bank of Japan kept its monetary policy unchanged. Chinese stocks are mixed: the Shanghai Composite Index is flat while Hong Kong’s Hang Seng Index is down 0.3%. Australia’s All Ordinaries Index lost 0.3% with Australian dollar accelerating its climb against the greenback after stronger-than-expected November jobs report.

Brent gains support Saudi Aramco after its inclusion in indexes

Brent futures prices are marginally higher today. Prices rose yesterday after Energy Information Administration reported US crude oil inventories fell by 1.1 million barrels last week, smaller than SP Global Platts analysts’ forecast: February Brent crude rose 0.2% to $66.26 a barrel on Wednesday. Rising oil prices support also shares of Saudi Arabia’s and world’s biggest oil company – Saudi Aramco. However Saudi Aramco’s shares fell almost 3% during Wednesday's session after being included in the MSCI Emerging Markets Index (ETF: EEM) and the Saudi Tadawul Index. This is the result of profit taking of funds or retail investors who bought in advance of the company being added to the index. The company's stock was first offered for 32 riyals ($8.53) per share on December 10. Shares closed about 0.7% lower on Tuesday, the first decline since its record-breaking initial public offering, but were still up about 18% from the IPO price. Aramco closed 10% higher after its first day of trading on December 11. Only 1.5% of the company has been sold despite an announced goal of 5%, with wealthy Saudi families and regional allies as main investment and over 97% of the retail investors exclusively from Saudi Arabia and the Gulf.

Gold up

Gold prices are edging higher today. The price of an ounce of gold for February delivery lost 0.1%, to $1,478.70. yesterday as the dollar strengthened.