Asian stocks fall while US breaks new record

Daily Analysis - 20/12/2019

Positive trade news boosted investor sentiment

Major Asia stocks dipped by the end of Friday, while US markets registered a new record, with fresh positive reports regarding the trade deal. Japan’s Nikkei 225 matched the descending trend, falling 0.20% to close at 23,816.62. Over in the U.S, investors set aside the news regarding U.S. President Donald Trump’s impeachment, with the S&P 500 breaching the important 3,200 level. It improved 0.5% to 3,205.35, recording its first close over 3,200. The Dow Jones Industrial Average rose more than 173 points to 28,376.95. while the Nasdaq Composite increased 0.7% to close the session at 8,887.21.

Gold fell as investor sentiment improved

On Friday Gold prices fell in a consolidation, constrained by the increased risk desire in anticipations that an introductory China-US agreement will be approved soon. All this while investors anticipated some US GDP figures announcement for fresh signals.

On Thursday US Treasury Secretary Steven Mnuchin announced that the United States and China would confirm their so-called ‘Phase one’ trade agreement at the start of next year.

Spot gold dropped 0.1% to $1,478.32 per ounce while US gold futures fell 0.1% to $1,482.69 per ounce.

Oil near 90-day top

On Friday, oil remained constant near a 90-day top going for a third continuous weekly growth, due to the easing of China-US trade pressures that have press the market risk appetite as well the global economic growth forecast. US West Texas Intermediate fell 8 cents, to $61.09 per barrel while Brent futures increased 5 cents, to 66.60 a barrel.

U.S anticipates volatility

The greenback was seen in a consolidation mode yesterday morning while expecting the gross domestic product data to come out on Friday. It was lightly moved by a report revealing that factory movement in the mid-Atlantic area has almost postponed this month. The dollar index fell 0.02% to 97.37 while traders continued to be off from making significant moves before the Bureau of Economic Analysis today.

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