⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Stocks stay near record highs; focus turns to central banks, earnings

Published 2020-01-20, 07:34 a/m
© Reuters.  Stocks stay near record highs; focus turns to central banks, earnings
EUR/USD
-
XAU/USD
-
US500
-
JP225
-
INTC
-
USD/CNY
-
TXN
-
GC
-
LCO
-
ESZ24
-
CL
-
1YMZ24
-
NFLX
-
IXIC
-
ERICAs
-
STOXX
-
MIAPJ0000PUS
-
CSI300
-
MIWD00000PUS
-
DXY
-

* Shares hold near record highs

* U.S. markets shut for holiday

* Oil prices climb on Libyan supply concerns

* Week packed with central bank meetings, earnings, Davos

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates throughout, adds chart, fresh comment)

By Dhara Ranasinghe

LONDON, Jan 20 (Reuters) - World stocks traded just below record highs on Monday, pausing ahead of this week's central bank meetings, economic data and earnings, while oil prices rose to their highest in over a week after blockades began shutting down two Libyan oilfields.

European equity markets were lower .STOXX , while U.S. stock futures dipped ESc1 1YMc1 , with trading subdued on the Martin Luther King Jr. holiday in the United States.

Still, MSCI's s all-country index .MIWD00000PUS is up almost 2.5% for the first three weeks of the year, as an easing in U.S.-China trade tensions and signs that the worst may be over for the world economy bolster sentiment. The S&P 500 .SPX -- a broad gauge of U.S. shares -- has gained just over 3% and the tech-heavy Nasdaq .IXIC almost 5%.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.25% on Monday after rising to its highest since June 2018. Japan's Nikkei .N225 gained 0.2% to near its highest in 15 months.

In China, the blue-chip CSI300 index .CSI300 rose 0.7%. The yuan rose to a six-month high CNY= .

U.S. corporate earnings this week include Netflix NFLX.O , Intel Corp INTC.O and Texas Instruments TXN.O , while the European Central Bank, Bank of Canada and Bank of Japan hold policy meetings.

"Optimism is high, mainly, though, because we appear to have clicked back to a world of growth enthusiasm," said Chris Bailey, European Strategist at Raymond James in London.

"The upcoming earnings season is going to be fascinating ... Netflix and Intel on Tuesday and Thursday in the U.S. are going to be insightful re the tech sector, whilst UBS tomorrow, ASML on Wednesday and Ericsson (BS:ERICAs) Friday will be helpful on perceptions towards Europe."

EVENT-PACKED WEEK

The Bank of Japan meets on Tuesday, while the ECB is expected to open a key strategic policy review when it meets on Thursday. brings the release of key business activity data, while the World Economic Forum in Davos is also in focus, with U.S. President Donald Trump expected to discuss trade disputes with European Commission President Ursula von der Leyen. prices rose to their highest in more than a week after two large oil fields in Libya began shutting down after forces loyal to Khalifa Haftar closed a pipeline. O/R

Brent crude LCOc1 futures were last up 0.7% at $65.31 a barrel. U.S. crude CLc1 jumped 0.6% to $59.

The dollar rose to its strongest level of 2020 .DXY after last week's run of data confirmed that the U.S. economy is holding up well.

Figures on Friday showed U.S. homebuilding surged to a 13-year high in December and a gauge of manufacturing activity rebounded to its highest in eight months. dollar edged up 0.1% against a basket of currencies, with the index rising as high as 97.727, its strongest since Dec. 24 .DXY . The euro was down at $1.1085 EUR=EBS .

"In 2020, we don't expect the pace of growth to slow as much as it did last year," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

"Accommodative policy and the reduction of downside risk following the signing of the Phase 1 U.S.-China trade deal will help support the economy and risk assets."

Sterling GBP=D3 came under some selling pressure after British finance minister Sajid Javid stoked fears about weak ties with the European Union following Britain's departure from the bloc. gold gained to around $1,560 an ounce XAU= , after reaching a seven-year high earlier this month at the height of Iran-U.S. tensions.

https://tmsnrt.rs/38aqXZb

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.