Fri, 05 Jun 2020

U.S. stocks trade higher in line with global sentiment

By Jay Jackson, Sydney News.Net
10 Jan 2019, 09:35 GMT+10

NEW YORK, New York - U.S. stocks continued their rally on Wednesday, taking the major indices into their fourth day of straight gains.

The U.S. dollar meantime was sold off sharply.

Strong U.S. jobs data, and publication of the minutes of the December meeting of the Federal Reserve helped sentiment, as did continued signs of progress in U.S.-China trade talks.

Apple rose strongly despite a report from Nikkei Asian Review that it has reduced its first-quarter planned production for three of its new iPhone models by 10%.

At the close of trading Wednesday, the Dow Jones industrials were ahead 91.67 points or 0.39% at 23,879.12.

The Standard and Poor's 500 rose 10.55 points or 0.41% to 2,584.96.

The Nasdaq Composite climbed 60.08 points or 0.87% to 6,957.08.

The big action Wednesday though was on FX markets, with the dollar losing ground. At the heart of the sell-off was the release of the Fed minutes which revealed members are hesitant about pushing official interest rates higher too quickly. The minutes confirm indications given by Fed chief Jerome Powell on Friday that more patience may be required.

The euro rose sharply to 1.1547 Wednesday. The British pound strengthened to 1.2797, while the Japanese yen gained to 108.15.

The Swiss franc firmed to 0.9741. The Canadian dollar rose to 1.3208. The Australian dollar gained to 0.7175, while the New Zealand dollar was in demand at 0.6788.

Stock markets overseas saw strong gains Wednesday. The London FTSE 100 closed 0.66% higher. The German Dax rose by 0.83% and the Paris-based CAC 40 appreciated by 0.84%.

The sentiment had carried through from Asian markets where the Nikkei 225 in Tokyo closed 223.02 points or 1.10% higher at 20,427.06.

The Australian All Ords added 55.10 points or 0.95% to 5,838.40.

The Hong Kong Hang Seng strengthened by 543.94 points or 2.10% to 26,419.39.

The Shanghai Composite rose 17.88 points or 0.71% to 2,544.34.


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