^N225 - Nikkei 225
| Previous close | 23,795.44 |
| Open | 23,850.12 |
| Volume | 0 |
| Day's range | 23,757.53 - 23,869.38 |
| 52-week range | 20,110.76 - 24,115.95 |
| Avg. volume | 61,788 |
- Bloomberg
Stocks Jump, Futures Rise as Virus Fears on Hold: Markets Wrap
(Bloomberg) -- Stocks jumped in Europe while U.S. index futures edged higher as investors digested the latest corporate news and economic data, setting aside for now fears over a deadly virus spreading from China. Oil fell for a fourth day.The Stoxx Europe 600 Index pushed toward a record close on its biggest gain in five weeks, with 18 of 19 industry groups in the green. Bayer AG rose on speculation it could settle Roundup litigation talks in the U.S. Contracts on the three main gauges on Wall Street pointed to a firm open. The common currency turned lower after purchasing manager reports missed forecasts for the euro area, though Germany’s reading was better than expected. PMI statistics for the U.S. will be released later today.Officials in China boosted travel restrictions to cover 40 million people to contain the virus’s spread, yet the World Health Organization stopped short of declaring a global health emergency. Markets in mainland China and South Korea were shut for the lunar new year holidays and Hong Kong closed early with a modest gain. Treasuries trimmed an earlier drop.While investors remain cautious with global stocks trading close to all-time highs, corporate earnings are topping expectations and slew of data this month has validated forecasts for a recovery in the global economy. Still, traders remain cognizant of the chance the virus develops into a more devastating pandemic like the SARS illness that emerged in China 17 years ago.“Drastic steps, such as city-wide quarantine measures, can be a double-edged sword when it comes to market impact,” ING senior rates strategist Antoine Bouvet wrote in morning note. “On the one hand they signal the authorities are taking the problem seriously and help containment, on the other hand, they help paint a dramatic picture to investors unfamiliar with dealing with this sort of risk.”Elsewhere, the pound slipped as traders shrugged off better-than-expected PMI data for the U.K. in January.These are the main moves in markets:StocksFutures on the S&P 500 Index advanced 0.2% as 6:15 a.m. New York time.Nasdaq 100 Index futures increased 0.3%.The Stoxx Europe 600 Index surged 1.2%.Germany’s DAX Index surged 1.3%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The British pound declined 0.2% to $1.3091.The euro fell 0.2% to $1.1034.The Japanese yen decreased 0.1% to 109.62 per dollar.BondsThe yield on 10-year Treasuries advanced one basis point to 1.74%.The yield on two-year Treasuries increased one basis point to 1.52%.Britain’s 10-year yield climbed less than one basis point to 0.592%.Germany’s 10-year yield climbed one basis point to -0.30%.CommoditiesWest Texas Intermediate crude declined 0.4% to $55.37 a barrel.Gold decreased 0.2% to $1,559.43 an ounce.Iron ore dipped 0.3% to $90.51 per metric ton.\--With assistance from Cecile Gutscher and Adam Haigh.To contact the reporter on this story: Constantine Courcoulas in Athens at ccourcoulas1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Todd WhiteFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Bloomberg
For Japan’s Bullish Chartists, Stocks Could Rally Like It’s 1989
(Bloomberg) -- Follow Bloomberg on Telegram for all the investment news and analysis you need.Japan’s stock market could rally toward levels unseen since before the nation’s economic bubble burst about three decades ago, if so-called golden cross patterns are any guide.For that to happen, the Nikkei 225 Stock Average would have to climb enough so that its 12-month moving average goes above its 24-month average, forming a golden cross, according to Yukihiro Takahashi, a manager at Ichiyoshi Securities Co. in Tokyo.Definitions of such technical terms differ from analyst to analyst, based on moving averages for various time periods as well as other factors. In Takahashi’s analysis, golden crosses have occurred four times on the Nikkei 225 since 1980, with the most recent being in January 2013, when the gauge extended a rally that drove it higher for six of the past seven years.“A golden cross would require the Nikkei 225 to surpass the highest price seen in October 2018,” Takahashi said. “Even if it doesn’t form this month, looking at the MA lines, it will most certainly form next month.”Takahashi points out that a golden cross formed in the 1980s, during which Japan’s asset bubble boosted stocks to a record high in 1989. A new golden cross would signal the Nikkei 225 can keep advancing until August 2022 and possibly reach 29,000, he said. The trend will continue if the benchmark average’s 60-month moving average maintains its upward slope, he added.Naohiko Miyata, the chief technical analyst at Mitsubishi UFJ Morgan Stanley Securities Co., said the golden cross and other technical indicators suggest the market is in the midst of a strong trend. The blue-chip stock gauge has recovered about half of the drop from its 1989 peak to its 2009 low.“At a minimum, the Nikkei 225 could climb to 28,000, and it’s not a dream for the gauge to try for 30,000 next fiscal year,” Miyata said.The Nikkei 225 was little changed at 23,782.67 as of 11:30 a.m. in Tokyo.While the technical picture may look good for stocks, eventually the rosy outlook will have to be backed by fundamentals, said Takashi Nakamura, a senior strategist at Tokai Tokyo Research Institute Co. There’s still a risk that the market may retreat given its rapid gains toward the end of last year, he said. The Nikkei 225 climbed 8.7% during the October-December period, its biggest quarterly advance in two years.“Right now, long-term market views are completely split between fundamentals and technicals,” Nakamura said. “Markets are carrying risk as shares are driven upward without strong fundamentals to back it up.”(Adds Nikkei 225’s current level in eighth paragraph)To contact the reporters on this story: Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net;Shoko Oda in Tokyo at soda13@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Naoto Hosoda, Kurt SchusslerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Bloomberg
Stocks Edge Higher With Virus Fallout in Focus: Markets Wrap
(Bloomberg) -- For a fresh perspective on the stories that matter in Australian business and politics, sign up for our new weekly newsletter.U.S. stocks eked out a small advance, dodging the losses that took hold in Europe and Asia, as investors evaluated the risk that a deadly respiratory virus spreading from China could curb global growth. Treasuries climbed and oil dropped.Gains for big tech companies overshadowed losses for makers of consumer goods, providing just enough lift to send the Nasdaq Composite Index to a fresh record high. Other markets showed greater concern about the potential fallout, with oil sinking to its lowest level since November on speculation the virus could dent demand. Government bonds and the yen rallied as investors sought out havens.Earlier, China’s Shanghai Composite Index plunged 2.8% on the last trading day before the Lunar New Year holiday, the biggest drop in eight months, as traders considered the virus’s potential impact on travel and shopping.While corporate earnings have beaten analysts’ estimates this season amid signals that global growth is picking up, investors are cautious with stocks trading at lofty valuations. Fewer than 20 deaths have been tallied from the Chinese virus, and the World Health Organization opted against calling the outbreak a public health emergency of international concern. But traders are hesitant to take on risk on the chance the outbreak could develop into something like the much more devastating SARS respiratory illness that emerged in China 17 years ago.“There is concern that this may become a much bigger event,” said Quincy Krosby, chief market strategist for Prudential Financial Inc. “The market is vulnerable to a pullback or a consolidation.”Elsewhere, emerging-market stocks fell to a two-week low. Mining companies led the Stoxx Europe 600 Index lower. The euro weakened after policy makers held interest rates steady and European Central Bank President Christine Lagarde said officials will look into the potential side effects of negative interest rates.Read more on the impact from the virus:Singapore Reports Virus Case as China Limits Some TravelDeadly Virus Turns Wuhan Into a No-Go Zone for AirlinesChinese Stocks Plunge in Worst End to Lunar Year on RecordHere are some events to watch out for this week:Companies including Intel Corp. and Procter & Gamble Co. will post results.Eurozone PMI data is due Friday.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.These are the main moves in markets:StocksThe S&P 500 Index rose 0.1% at the close of trade in New York; the Nasdaq Composite added 0.2%.The Stoxx Europe 600 Index fell 0.7%.The MSCI Asia Pacific Index dipped 0.8%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro fell 0.3% to $1.1055.The British pound fell 0.2% to $1.3121.The Japanese yen gained 0.3% to 109.49 per dollar.BondsThe yield on 10-year Treasuries dipped four basis points to 1.73%.Germany’s 10-year yield fell five basis points to -0.31%.Britain’s 10-year yield decreased five basis points to 0.59%.CommoditiesWest Texas Intermediate crude decreased 2% to $55.59 a barrel.Gold rose 0.3% to $1,562.72 an ounce.\--With assistance from Gregor Stuart Hunter, Adam Haigh, Todd White and David Wilson.To contact the reporter on this story: Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Mainland China Shares Plunge Ahead of World Health Organization Global Health Emergency Decision
Australian employment outpaced forecasts for a second month in December pushing the jobless rate to a nine-month low, a much-needed improvement that could forestall a near-term cut in interest rates. Japan posted a deficit for a second straight year last year as its exports were hurt by a slowdown of demand in China amid a tariff war with the United States.
- Bloomberg
Stocks Edge Higher in Choppy Trading; Oil Sinks: Markets Wrap
(Bloomberg) -- U.S. stocks edged higher in volatile trading as investors considered the potential for a virus that emerged in China to eventually dent economic growth. Oil tumbled on concern the market is oversupplied.The S&P 500 Index ended the day up less than 0.1%, lifted by gains in technology shares and positive earnings reports but held back by concern that the deadly respiratory illness could spread, even as China moved to contain the outbreak. IBM rose the most in four months after revenue beat estimates. Tesla Inc.’s market value soared past $100 billion.With stocks trading near records, investors are on alert for any developments that could derail the momentum. They have taken a cautious stance amid concern the coronavirus that has already killed 17 people could turn into a global pandemic.“The fear is that it could hurt growth, that this could continue to have an impact on global markets that are already reeling from the impacts of trade,” said Matt Forester, chief investment officer at BNY Mellon’s Lockwood Advisors.Elsewhere, the Stoxx Europe 600 Index dipped as Italian banks slumped amid a fresh bout of political turmoil.West Texas oil fell below $58 a barrel as ample global supplies offset the loss of exports from Libya. The pound strengthened after Prime Minister Boris Johnson’s Brexit deal cleared its final hurdles in Parliament.Here are some events to watch out for this week:Companies including Texas Instruments Inc., Intel Corp. and Procter & Gamble Co. will post results.Policy decisions are due from central banks in Indonesia and the euro region.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.These are the main moves in markets:StocksThe S&P 500 Index rose less than 0.1% at the close of trade in New York.The Stoxx Europe 600 Index fell 0.1%.The MSCI Asia Pacific Index added 0.6%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%.The British pound jumped 0.6% to $1.3134.The euro rose 0.1% to $1.109.The Japanese yen was little changed at 109.87 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 1.77%.Germany’s 10-year yield dipped one basis point to -0.26%.Britain’s 10-year yield was little changed at 0.63%.CommoditiesWest Texas Intermediate crude dropped 2.9% to $56.67 a barrel.Gold was little changed at $1,558.55 an ounce.\--With assistance from Christopher Anstey, Andrew Janes, Adam Haigh, Todd White, Robert Brand, Sheela Tobben, Vildana Hajric and Sarah Ponczek.To contact the reporter on this story: Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Asian Shares Recover from Early Weakness; South Korean KOSPI Jumps on Surge in Government Spending
Seoul shares ended sharply higher after data showed South Korea’s government spending surge helped the economy post its fastest quarterly growth in more than two years.
- Bloomberg
Stocks Slide After Deadly Virus Migrates to U.S.: Markets Wrap
(Bloomberg) -- U.S. equities fell on reports that a deadly respiratory illness that originated in China had migrated to the U.S., spurring concern about the potential economic impact.Industrial and consumer shares were among the worst performers as the S&P 500 Index pulled back from a record. That followed retreats in Asia and Europe, with Hong Kong the hardest hit. Luxury stocks posted their biggest drop since October on worries the virus will disrupt spending during a key Chinese holiday period. Banks declined after UBS Group AG missed profitability targets; Boeing slumped on speculation its 737 Max jet wouldn’t be cleared to fly until mid-year.The risk-off mood helped support some traditional haven assets, and the yen and Treasuries advanced.Read more: China Virus Concern Hammers Asian Stock SentimentThe emergence of the illness in China -- and concerns it will now spread outside the country -- stirred memories of the SARS outbreak 17 years ago for some market watchers, though it isn’t yet as serious. The developments provided an excuse for investors who bid up U.S. stocks to record highs last week to take a pause and assess the outlook for global growth and corporate profits as earnings season picks up.“History tells us that most of these situations can be contained,” said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute. “What we would watch for is does it become a big enough issue that it actually starts to change consumer behavior?”Elsewhere, Germany’s DAX Index briefly surpassed the peak reached two years ago. The Stoxx Europe 600 Index posted a second day of losses. The Bank of Japan kept policy unchanged as expected, though raised its economic growth forecast for 2020. Crude held below $60 a barrel as ample global supplies offset the loss of exports from Libya.Here are some events to watch out for this week:Companies including IBM, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks in Canada, Indonesia and the euro zone.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, is underway in Davos, Switzerland.These are the main moves in markets:StocksThe S&P 500 Index fell 0.3% at the close of trading in New York.The Stoxx Europe 600 Index sank 0.1%.The MSCI Asia Pacific Index fell 1.2%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro slipped 0.1% to $1.1088.The British pound gained 0.3% to $1.3045.The Japanese yen climbed 0.3% to 109.81 per dollar.BondsThe yield on 10-year Treasuries dipped five basis points to 1.77%.Germany’s 10-year yield fell three basis points to -0.25%.Britain’s 10-year yield fell two basis points to 0.63%.CommoditiesWest Texas Intermediate crude slumped 0.3% to $58.34 a barrel.Gold fell 0.1% to $1,558.62 an ounce.\--With assistance from Livia Yap, Eric Lam, Ranjeetha Pakiam, Cormac Mullen, Todd White, Sam Potter and Claire Ballentine.To contact the reporter on this story: Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Escalating Coronavirus Outbreak Pressures Asian Indexes; Hong Kong Tumbles on Moody’s Downgrade
Stocks in Hong Kong led losses regionally among major Asian markets on Tuesday after ratings agency Moody’s cut its rating for the city to Aa3 from Aa2 on Monday.
- FX Empire
Asian Shares Mostly Higher; Chinese Pharmaceuticals Soar on Coronavirus Fears
Chinese pharmaceutical stocks skyrocketed Monday as China reported more than 100 new cases of pneumonia caused by a new strain of coronavirus.
- FX Empire
Asian Shares Post Solid Weekly Gains Amid Trade Deal Signing, China GDP Growth
The United States removed China from a list of countries considered currency manipulators just two days before top trade negotiators for Washington and Beijing signed a key “Phase One” trade deal, the Treasury Department announced on January 13.
- Bloomberg
Stocks Surge to Record Highs; Dollar Strengthens: Markets Wrap
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Stocks extended this week’s relentless push to all-time highs as positive U.S. and China economic data, low interest rates and easing trade tensions propelled investor optimism. The dollar strengthened and gold climbed.The benchmark S&P 500 Index, along with the tech heavy Nasdaq Composite, set record highs for an eighth consecutive trading session. Boeing Co. slumped after a Fitch downgrade, weighing on the Dow Jones Industrial Average. The Stoxx Europe 600 Index closed at a record, posting its biggest gain since mid-December.“The headwinds of last year have dissipated and we’ve gotten more clarity on the backdrop. That clarity is helping to solidify marginal improvement in risk assets,” said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions, which oversees $1 trillion “The big one is going to earnings, and so far so good.”The longest-dated Treasuries dipped after the U.S. announced plans for a new 20-year bond. The dollar increased against its major peers including the euro and pound, with the latter reversing gains while gilts turned higher after U.K. retail sales data disappointed.Investors in risk assets headed into the weekend looking confident after the completion of an initial Sino-American trade deal and solid results from the biggest banks on Wall Street. U.S. markets are closed Monday for the Martin Luther King Jr. holiday. The earnings season continues to ramp up next week with Procter & Gamble Co. and Intel Corp. reporting, but for now most economic data is supporting sentiment: China GDP was in line with estimates, while housing starts surged in the U.S.“At this stage of the game we’ve got a Fed that’s committed to staying on hold, you’ve got a belief that there’s a signal of easing, and some improvement in the economic data globally,” Kathy Jones, chief fixed income strategist at Charles Schwab, said on Bloomberg Television. “That’s helping propel markets.”Elsewhere, oil slumped for a second week as optimism following the signing of the America-China trade agreement offset signs that supplies remain plentiful.Emerging-market equities also climbed for a seventh week of gains.These are the major market moves: \--With assistance from Elena Popina.To contact the reporter on this story: Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Asian Indexes Boosted by China GDP Growth; Australian Shares Hit Another Record High
Other Chinese economic data released alongside the GDP numbers showed growth in industrial output and retail sales for the month of December. Analysts read the data from Beijing positively, although there was still some caution about the partial trade deal with the U.S.
- Bloomberg
Tech, Financial Shares Lead Surge to Record Highs: Markets Wrap
(Bloomberg) -- For a fresh perspective on the stories that matter for Australian business and politics, sign up for our new weekly newsletter.The record-setting rally in U.S. equities accelerated in the wake of Wednesday’s China trade deal and signs consumer demand remains strong. Bond yields rose.All three main U.S. stock benchmarks surged to all-time highs after setting multiple records earlier this week, with technology and financial shares leading the surge. Alphabet Inc.’s market valuation hit $1 trillion for the first time. Banks and chipmakers rallied after solid earnings reports from Taiwan Semiconductor Manufacturing Co. and Morgan Stanley. Treasuries fell after data showed U.S. retail sales strengthened in December, while the dollar gained.“The consumer is really in positive shape,” said Ryan Detrick, senior market strategist at LPL Financial. “Then when you factor in the alleviation of the U.S.-China tensions, the market is in a pretty good spot.”The Senate approved President Donald Trump’s U.S.-Mexico-Canada free trade agreement, handing the president a major political win on the same day senators were sworn in as jurors in his impeachment trial.The formal signing of a phase one deal between the world’s two biggest economies has put the trade war on hold as far as many investors are concerned. Assuming the detente lasts, traders will be seeking fresh catalysts, most likely in economic data and the ramp-up of earnings season.“The question is if we can keep up the momentum,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial. “Up next, housing, an economic bellwether, which will provide yet another data point of how our economy closed out the year.”West Texas crude fluctuated in a narrow range before pushing higher.Elsewhere, the Stoxx Europe 600 Index closed at a record high after swinging between gains and losses. The euro erased earlier gains, while most European bonds edged up. The ruble slipped in the wake of Russian President Vladimir Putin’s call for sweeping constitutional changes and subsequent replacement of his long-serving prime minister.Meanwhile, soybeans slumped overnight after China signaled purchases would be based on demand, rather than a pre-set amount.Here are some events to watch for this week:China GDP, along with key monthly data for December, come on Friday.A final reading on the euro-zone’s December inflation is also due on Friday.There are some of the main moves in markets:\--With assistance from Cecile Gutscher.To contact the reporters on this story: Claire Ballentine in New York at cballentine@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Asian Stocks Firm; Australian Shares Pass 7000-Point Milestone
The Australian share market surged into record territory on Thursday, passing the 7000-point milestone for the first time ever. The Bank of Japan is expected to keep monetary policy steady next week.
- FX Empire
Anxious Markets Await Trade Deal Signing, Futures Are Flat, U.S. Data Surprises
Global markets are mixed as traders wait for the Phase One deal signing. The details so far suggest the Phase One deal is far less than the market was expecting.
- FX Empire
Asian Shares Finishes Lower on Investor Trepidation Ahead of Trade Deal Signing
The fact that tariffs are likely to remain in place until after the 2020 U.S. presidential elections is rattling investors along with U.S. Treasury Secretary Steven Mnuchin’s comment that existing tariffs on Chinese goods would stay, pending further talks.
- Financial Times
Film on daring female surfer makes waves in Bangladesh
The film No Dorai is based on the inspirational story of Bangladesh’s first competitive female surfer, who beat most of her male rivals. Director Tanim Rahman was busy promoting No Dorai — titled Dare to Surf for international markets — when he was served with a legal notice on December 10 that led to the withdrawal of the film from cinemas in the cities of Dhaka and Chattagram, where it had been showing since November 29. The film’s main character is named Ayesha, the name — sometimes written as Aisha — of one of the wives of Mohammed, the chief prophet and central figure of Islam.
- FX Empire
Asian Indexes Mixed; Aussie Shares Hit Record High Led by Mining Stocks
Australian shares hit record highs on Tuesday, powered by gains in financial and mining sectors, as optimism over a planned signing of a preliminary Sino-U.S. trade deal lifted investor spirits.
- FX Empire
Asian Shares Jump as Investors Await US-China Phase One Deal Signing
China’s blue-chip index closed at a near 2-year high on Monday, amid strength in technology shares, as investors turned optimistic ahead of the signing of the trade deal.
- Financial Times
Red states: Trump country's love affair with Chinese investment
It is late October in Jonesboro, Arkansas, a long way from the White House and a long way from the trade war. To launch the Anhui, China-based company’s 125,000 sq ft facility in Jonesboro, southern businessmen and their new Chinese colleagues formed an awkward line on stage behind a red ribbon, each holding a pair of golden scissors and looking at each other for the cue to make the cut. Local politicians were presented with gifts from Anhui, including a traditional painting of galloping horses — a Chinese metaphor for prosperity and success — while a giant screen played a video of factory workers in China performing a choreographed marching band routine.
- Bloomberg
U.S. Stocks Fall, Bonds Rise After Jobs Report: Markets Wrap
(Bloomberg) -- U.S. stocks fell from records, while Treasuries rose after the latest jobs report delivered mixed signals on the strength of the economy. The dollar declined versus major currencies.The S&P 500 dropped for the first time in three days after hiring data fell short of estimates and wage growth was the weakest in more than a year. The benchmark still notched a weekly advance as the situation in the Middle East held a tenuous calm. Boeing Corp. slumped, helping to pull down the Dow Jones Industrial Average.Treasuries pushed higher as the wage figures erased any inflation worries. Futures traders maintained the amount of easing they expect from the Federal Reserve.The jobs data ultimately did little to alter investor views on the strength of the economy or the Fed’s next step. With stocks near all-time highs, markets continue to look past the flare-up in tensions with Iran and focus on the potential for a pickup in global economic growth.“This is the opposite of a game-changer. It’s very consistent with everyone’s views going into this report, the Fed stays on hold and the economy is slowing down,” said Nela Richardson, an investment strategist at Edward Jones. “We’re consistent on the overall view the Fed stays pat on short-term rates this year. If anything, this report tilts the Fed a little bit towards being more accommodative, not less.”Elsewhere, European shares rose, while bonds in the region advanced. Gold gained, while West Texas oil dropped below $60 a barrel.These are moves in major markets:StocksThe S&P 500 Index fell 0.3% as of 4 p.m. New York time.The Dow Jones Industrial Average dropped 0.5%.The Stoxx Europe 600 Index fell 0.1%.Germany’s DAX Index gained 0.3%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%.The British pound dropped 0.1% at $1.3059.The euro rose 0.1% at $1.1112.The Japanese yen was little changed at 109.50 per dollar.BondsThe yield on 10-year Treasuries fell three basis points to 1.82%.Britain’s 10-year yield fell five basis points to 0.773%.Germany’s 10-year yield declined two basis points to -0.198%.CommoditiesWest Texas Intermediate crude dropped 0.9% to $59.05 a barrel.Gold rose rose 0.4% at $1,560.30 an ounce.\--With assistance from Constantine Courcoulas and Vildana Hajric.To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Todd WhiteFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
- FX Empire
European Shares Trading Mixed after Asian Markets Post Strong Gains
In economic news, Australia’s retail sales data for November beat expectations, jumping 0.9%, the largest increase since last February, according to a Reuters report. A Reuters poll had forecast a 0.4% gain.
- Bloomberg
U.S. Stocks Rise to Records Amid Middle East Calm: Markets Wrap
(Bloomberg) -- U.S. stocks rose to fresh records as investor appetite for risk returned after America and Iran stepped back from the brink of war. The S&P 500, Dow Jones Industrial Average and Nasdaq indexes all closed at all-time highs as the conflict between the U.S. and Iran deescalated. Oil fell below $60 a barrel in New York, gold declined for a second day and the Japanese yen dropped to a two-week low versus the dollar.The greenback gained against major currencies for a third straight day after jobless claims fell by more than expected, adding to signs of economic strength ahead of the U.S. payrolls report Friday. Ten-year Treasury yields declined following a government auction.In company news, retail took a hit from signs of poor sales before earnings ramp up next week. Bed Bath & Beyond Inc. slid 19% after results missed analyst estimates, while Kohl’s Corp. also slumped following a disappointing holiday season.“Things have calmed down a bit and with the market hitting new intra-day highs today it seems investors are willing to buy the very little dip we got due to these geopolitical issues,” said Jennifer Ellison, principal at San Francisco-based BOS. “Markets go up and down despite what happens geopolitically, and in many cases geopolitical issues like this really don’t have a direct economic impact.”If the relative geopolitical calm holds, it will allow traders to switch focus to the next clue on the health of the world’s biggest economy, which will come with the non-farm jobs report. Adding to sentiment, the partial trade deal between the U.S. and China looks locked in as China’s vice premier will visit Washington next week for a signing ceremony.Elsewhere, the pound touched its lowest in two weeks after Bank of England Governor Mark Carney said policy makers are debating merits of more monetary stimulus. European and emerging-market shares rose.Here are some events to watch for this week:The U.S. monthly non-farm employment report is due Friday.These are moves in major markets:StocksThe S&P 500 Index gained 0.7% as of 4 p.m. New York time.The Nasdaq 100 Index rose 0.9%.The Stoxx Europe 600 Index climbed 0.3%.Germany’s DAX Index jumped 1.3%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The British pound decreased 0.3% to $1.3058.The euro was little changed at $1.1107.The Japanese yen weakened 0.4% to 109.51 per dollar.BondsThe yield on 10-year Treasuries fell two basis points to 1.85%.Britain’s 10-year yield was little changed at 0.819%.CommoditiesWest Texas Intermediate crude was steady at $59.59 a barrel.Gold dropped 0.4% to $1,553.40 an ounce.\--With assistance from Todd White.To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Sam PotterFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
