U.S. stocks rose slightly as investors weighed their risk tolerance amid the resumption of trade talks with China. The dollar fell to its lowest level since October as traders assessed seemingly dovish remarks from Federal Reserve chairman Jerome Powell on Friday. The S&P 500 Index gained led by consumer discretionary stocks and energy as oil surged higher. Meanwhile the Nasdaq benchmarks climbed on strength in telecommunications services and semiconductor shares. The Dow Jones Industrial Average was the only major U.S. gauge in the red. The S&P 500 added 1.6% last week after dropping 9% in December. The Stoxx Europe 600 Index retreated for the third time in four sessions. Investors are still struggling to pick a direction after the wild ending to 2018. Powell's soothing comments on Friday and China's moves to shore up its economy lifted sentiment somewhat, but risks loom large. And U.S. lawmakers are still unable to reach agreement on a budget, leaving the federal government shut down for a third week. Fresh trade talks between the U.S. and China helped sap demand for the greenback, while Treasury yields fell following a surge on Friday. The pound slipped against the euro as U.K. lawmakers sought to avoid a no-deal Brexit.
U.S. stocks slumped after Apple Inc. added to global growth concerns with a cut in its sales outlook. The yen remained stronger after wild moves in the currency markets overnight.The S&P 500 fell 1 percent, though it traded well off the lows in futures after sentiment got a boost from Bristol-Myers Squibb's bid to buy Celgene and a strong reading on private hiring for December. Apple's first revenue cut in a decade dragged the tech giant down 9 percent. It cited an unforeseen slowdown in China, weighing on suppliers and tech-heavy equity measures. The Stoxx Europe 600 Index and Asian shares were both lower.
U.S. stocks slumped as investors began the new year anxious about the same issues that sent equities to the worst December rout since the Great Depression. Safe havens rallied, with gold and the yen higher. The S&P 500 Index retreated, with health-care and consumer shares under pressure on the first day of 2019. The latest blow to investor sentiment came from a weak reading on Chinese manufacturing, adding to concern that global growth is slowing. That overshadowed signs President Donald Trump may be willing to make a deal to end a government shut down. The risk-off tone that gripped markets in December remained in place to start 2019, with the threat of rising rates, an escalating trade war and slowing growth still looming. While Trump made positive noises about reaching a trade deal with his counterpart Xi Jinping over the weekend, the Chinese data are a stark example to investors that the protectionist showdown is starting to have an impact on economic activity.
Yesterday, USDCAD climbed from 1.3446 up to 1.3532 before easing back to 1.3485. Global equity markets sold off heavily yet again and are now in negative territory for 2018. Overnight USDCAD climbed to 1.3542 before a quick move 1.3564 – a 19 month high after the Canadian retail sales and GDP data were released. The pairing pulled back to 1.3530 before climbing to retest the 1.3564 level after the Bank of Canada Business Outlook survey (Q4) was released (2.2 vs. 2.8 prior). USDCAD then dropped to 1.3511 after a U.S. Fed member said that this week's FOMC statement "wasn't a promise to raise rates again." Equity markets climbed higher on these comments but have since eased back. USDCAD has since moved back to 1.3555.
U.S. equities followed stocks in Europe and Asia lower Thursday as markets digested the Federal Reserve's decision a day earlier. The dollar slumped against most peers and the yen rallied. The S&P 500 Index declined at the open, along with the Dow Jones Industrial Average, after a steep plunge Wednesday when Fed Chairman Jerome Powell said the process of reversing quantitative easing was on "autopilot" and downplayed the implications of market volatility. While policy makers signaled a less aggressive rate-hike path in 2019, Wednesday's quarter-point increase and Powell's comments on QE seemed to spook markets. Global stocks are set for their worst quarter since 2011, yet the Fed chair in his press conference said that "we don't look at any one market," and that in the abstract "a little bit of volatility" probably doesn't leave a mark on the economy.
Stocks climbed as investors wait to see whether Federal Reserve policy makers would strike a dovish stance when they reveal their rate decision today. Automakers led the S&P 500 Index higher in early trading as the Stoxx Europe 600 Index looked set to snap a four-day losing streak. Still, a cautious tone lingered after executives from FedEx Corp warned about a slump in global trade. Treasuries are in a holding pattern before the Fed announcement, when the central bank is expected to deliver the 4th rate hike of the year while signaling a slower approach to increases in 2019. Amid the recent volatility in stocks and other risky assets, many investors are looking to Fed Chair Jerome Powell to attempt to limit the fallout from an interest rate increase by delivering a less hawkish message than in recent meetings. That might also help placate President Donald Trump, who this week stepped up pressure on the central bank to avoid more tightening.
The S&P 500 Index climbed from a 14-month low as investor nerves seemed to steady a day after a rout in U.S. stocks. U.S. gains were led by industrial and financial companies. The Stoxx Europe 600 Index pared losses by more than half to trade slightly lower on the day. Treasuries and the Japanese yen advanced amid a lingering mood of caution after Chinese President Xi Jinping disappointed investors by offering no fresh commitments to stimulate the world's second-biggest economy in a keynote speech. Oil extended recent declines, with the benchmark U.S. grade briefly falling below $48 a barrel, as traders fretted about a glut of supply as well as the outlook for growth. The dollar slipped and the euro stayed higher even as German business sentiment deteriorated to its lowest level in more than two years and talk of a chaotic Brexit increased.
The slide in U.S. stocks slowed somewhat as investors weighed the impact of the Federal Reserve on growth in an economy already buffeted by trade, geopolitical tensions and a possible government shutdown. All major American equity benchmarks opened lower, before a tech rally pared some losses, as the Fed looked certain to raise rates after its policy meeting Wednesday. Investors will scrutinize the central bank's statement for clues whether its intentions for 2019 have changed. One market observer has already weighed in on the Fed: President Donald Trump tweeted Monday morning that it was "incredible" the central bank was considering a rate hike, given low inflation and a strong dollar. Treasuries and gold gained, and the yen nudged higher, after a bout of risk-aversion hammered global equities in recent sessions. lobal growth forecasts for next year are being trimmed as a trade war between the biggest economies bites and markets reel from a volatile 2018. Meanwhile, political uncertainty still grips investors. There are yet more personnel changes within the Trump administration and confusion remains over Britain's future relationship with the European Union.
Yesterday, USDCAD climbed from 1.3350 up to 1.3384 before easing back to hold a 1.3338 – 1.3365 range. Overnight, weaker than expected data out of China and the Eurozone saw equity markets decline and the USD and JPY broadly strengthen. The USD index re-tested the June 2017 highs (previously tested last month) after U.S. retail sales data (control group) beat expectations. USDCAD briefly climbed to 1.3402 overnight but has since declined to 1.3368. The pairing has since bounced back towards 1.3390.
U.S. equities gave up some early gains after an initial surge as investors weighed the latest trade developments between America and China. The euro fell and bonds rose as the European Central Bank confirmed an end to its asset-purchase program but sounded a cautious note on growth. The S&P 500 rose early Thursday following the news overnight that Chinese importers had resumed buying U.S. soybeans. Real estate and utilities led gainers, while financial shares slumped anew, sending the KBW Bank Index to its sixth retreat in seven sessions. Treasuries and the dollar edged higher as U.S. jobless claims came in below estimates.
U.S. stocks joined a global rally as the outlook for trade took a positive turn and confidence grew that the British prime minister will defeat a challenge to her leadership. Tech shares led the S&P 500 Index higher following gains in Europe and Asia after the chief financial officer of Huawei Technologies Co. was granted bail and President Donald Trump said he'd consider intervening in the case if it helps get a trade deal with China. Sentiment was bolstered by a report that Chinese officials are seeking to give foreign companies more access to local markets. U.S. banks underperformed, hovering near the lowest in three months. The British pound surged the most in a month and U.K. stocks climbed on speculation Theresa May will survive the vote of confidence. Treasuries and the dollar both remained lower on the day as a key measure of U.S. inflation picked up as expected in November. While developments on trade tends and Brexit have been at the forefront for investors, they're also keeping watch on the risk of a shutdown of parts of the U.S. government. Trump is at odds with Democratic leaders in Congress over funding for a border wall with Mexico.
North American equities rallied with European stocks on optimism about the prospects for success in American-Chinese trade talks. Tech shares and automakers led the S&P 500 Index higher after China was said to move toward cutting tariffs on U.S.-made cars. The Stoxx Europe 600 Index surged the most in eight months. The pound rallied as Prime Minister Theresa May asked European leaders to sweeten a Brexit deal, trimming some of its losses from a day earlier. The dollar was steady while Treasuries and core European bonds slipped.
U.S. equities extended a sell-off as traders took a grim view of the outlook for global growth and a potential escalation of tension between Washington and Beijing. A drop in banks and energy companies sent the S&P 500 Index toward an eight-month low following the gauge's worst week since March. Uncertainty over the strength of global growth lingered amid weak economic data out of China and news the country's vice foreign minister summoned the U.S. ambassador to protest the arrest of Huawei Technologies Co.'s CFO. Auto companies led the retreat in the Stoxx Europe 600 Index, and the euro strengthened. The USD gained while Treasuries and European sovereign bonds were mixed. Sentiment in financial markets has been fragile in recent weeks as traders gauge whether the Federal Reserve will slow its tightening path amid lingering trade-war fears. Data has started to hint at slowing growth in the world's top two economies, with signs that demand remains sluggish in China coming on the heels of a moderating U.S. labor market. The pound weakened as Theresa May postponed a key parliamentary Brexit vote rather than risk a bruising defeat. The EU Court of Justice upped the stakes on Monday, saying Britain could unilaterally choose to change tack and stay in the union.
Yesterday, USDCAD climbed from 1.3253 up to 1.3444 – erasing the gains from Monday after Wednesday's dovish slant to the Bank of Canada interest rate policy statement. Combined with another large decline in global equity markets, USDCAD was briefly propelled to new 17 month highs before falling back to 1.3370 as equity markets recovered. The pairing dropped sharply this morning on the combination of an exceptionally strong Canadian jobs report, a weaker than expected U.S. report, and a commitment by OPEC to cut oil production by 3% (with exceptions given to Iran, Venezuela, and Libya). Canada saw the single largest monthly employment gain ever including nearly 90,000 full time jobs. The unemployment rate fell to a 40+ year low. USDCAD dropped from 1.3390 down to 1.3254 with rebounds capped at 1.3310 thus far. The oil production cuts have oil gaining nearly 5% on the day and trading near 3 week highs.
U.S. stocks slumped, following European and Asian shares lower, as concern resurfaced that trade tensions between the world's two largest economies are far from resolved. Oil slid as OPEC ministers met in Vienna.The Dow Jones Industrial Average sank more than 500 points, while S&P 500 resumed its slide after one of the biggest routs of the year. Trade tensions reignited after the arrest of the chief financial officer of tech giant Huawei Technologies Co. -- dousing hope China and the U.S. would make immediate progress on a deal. The yuan dropped the most since October. The start of the futures session was marred by a sudden and unexpected plunge that sent a shock wave across equity markets.