By IFCMarkets
US stock indices end 2017 higher
US stock market ended the week on down note on Friday. The dollar weakness accelerated: the live dollar indexdata show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.4% to 92.29. S&P 500 fell 0.5% settling at 2673.61 led by telecom shares down 0.9%. Ten of the 11 main sectors finished lower. However US broad stock market ended 19.4% higher for the year. The Dow Jones industrial average lost 0.5% to 24719. The Nasdaq composite index lost 0.7% to 6903.39.
Trading was thin on Friday with many investors away until after the New Year holiday. While S&P 500 posted best gain since 2013 the ICE US Dollar index fell 9.8%, the first annual loss since 2012. Investors expect President Trump will focus on a $1 trillion infrastructure spending bill now after Republicans passed the overhaul of the US tax code. Increased infrastructure spending should deliver another boost to the stock market after the stimulus of tax cuts with corporate tax rate lowered to 21% from 35%.
European stocks record gains for 2017
European stocks closed lower on Friday as they ended the year higher. Both the euro and British Pound closed higher against the dollar. The Stoxx Europe 600 index slipped 0.4% while recording 7.7% gain for the year, the biggest annual jump since 2013. The DAX 30 fell 0.5% to 12917.64. France’s CAC 40 lost 0.5% while UK’s FTSE 100 finished 0.9% higher at new record high 7656.34. Indices opened mixed today.
Chinese manufacturing expands in December
Asian stock indices are mixed today in the first trading session of 2018. Markets in Japan are closed for a 4-day bank holiday. Chinese stocks are rising on upbeat manufacturing data: Caixin index of Chinese industry rose to a four-month high of 51.5 in December from 50.8 in November. The Shanghai Composite Index is 1.3% higher and Hong Kong’s Hang Seng Index is up 2%. Australia’s All Ordinaries Index is 0.1% lower as Australian dollar jumped 0.5% higher against the US dollar.
Oil higher on tighter supplies
Oil futures prices are extending gains today as the four-day unrest in Iran raised prospect of further tightening of global supply of crude on back of ongoing crude output cuts by OPEC and Russia. March Brent crude settled 1.1% higher at $66.87 a barrel on Friday.
Market Analysis provided by IFCMarkets
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