Risk-on sentiment dominated the first full trading day of 2020 as an interest rate cut in China and the prospect of an imminent signing of the “Phase One” US-China trade deal boosted investors’ spirits. US data: Initial unemployment claims came in at 222k vs. 220k eyed. Final December Markit Manufacturing PMI came in at 52.4, down a tick from the initial estimate. FX: The yen and US dollar were the strongest major currencies on the day, while the British pound was the big laggard (see my colleague Fiona Cincotta’s report for more) Commodities: Oil ticked incrementally higher, while gold tacked on roughly 0.5% today.
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US indices closed roughly 1% higher to close at the highs of the day (and month, and quarter, and year, and decade…)Technology stocks (XLK) led the way higher while higher yielding Utilities (XLU) and REITs (XLRE) lagged. Stocks on the move:
- Growth-oriented technology stocks like AMD (+7%), Micron Technologies (+3%) and Nvidia (+2%).
- China-based firms in particular were in demand, including Tencent (TCEHY, +4%) and Alibaba (BABA, +4%).
*There are no market-moving economic releases scheduled for tomorrow’s Asian session*
Original from: www.forex.com