US stocks booked best annual gain in 6 years

2/1/2020

Dollar weakening accelerated

US stock market ended the year on positive note on Tuesday propped by President Trump’s tweet he “will be signing our very large and comprehensive Phase One Trade Deal with China on January 15.” The S&P 500 added 0.3% to 3230.78, booking 28.9% gain for 2019, biggest since 2013. The Dow Jones industrial average rose 0.3% to 28538.44. Nasdaq advanced 0.3% to 8972.60. The dollar weakening slowed as October Case-Shiller home price index for 20 major metropolitan areas ticked up to 2.2% over year from a 2.1% rise in 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, slipped 0.1% to 96.68 and is lower currently. Futures on US stock indices are pointing to higher openings today.

European stocks end 2019 23% higher

European stock markets pulled back on Tuesday in thin trading ahead of New Year. GBP/USD turned lower while EUR/USD continued climbing Tuesday with both pairs higher currently. The Stoxx Europe 600 ended down 0.1% on last trading session of 2019, however gaining more than 23% on the calendar year. German stock market was closed on Tuesday. France’s CAC 40 slipped 0.1% and UK’s FTSE 100 lost 0.6% to 7542.44.

EU50 rising above MA(50) 01/02/2020 Market Overview IFC Markets chart

Chinese stocks lead Asian indexes gains

Asian stock indices are mostly higher today with markets in Japan closed as yen climb against the dollar reversed. Chinese stocks are higher after the People’s Bank of China stated Wednesday that it would cut the amount of cash that banks must hold as reserves, releasing around 800 billion yuan ($114.9 billion) in funds for lending, effective January 6: the Shanghai Composite Index is up 1.2% and Hong Kong’s Hang Seng Index is 1.2% higher. Australia’s All Ordinaries Index added 0.1% with Australian dollar reversing its climb against the greenback..

Brent gains ahead of expected US inventories fall

Brent futures prices are edging higher today. Prices pulled back on Tuesday: February Brent lost 1% to $66.00 on Tuesday. The American Petroleum Institute reported late Tuesday US crude oil supplies fell by 7.8 million barrels in the previous week. The Energy Information Administration will report on Friday the change in US oil inventories instead Wednesday when markets were closed for the New Year's holiday.

Gold strengthening dynamic while Dollar weakens halts

Gold prices are edging lower after Tuesday’s gain. The price of an ounce of gold for February delivery rose 0.3% to $1,523.10 Tuesday as the dollar wekening slowed.




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