Investing.com | Dec 17, 2019 12:18
European shares, as well as U.S. futures contracts on the S&P 500, Dow Jones and NASDAQ have all slipped lower—after earlier struggling to maintain gains with which to build on yesterday's fresh records. The about-face was triggered by increasing doubt on what looks to be an unbaked partial trade deal, with few actual details, between the world’s most powerful two economies. Oil was flat. The pound plunged while the dollar and Treasurys rose.
h3 Global Financial Affairs/h3U.S. futures gave up most of an advance.
SPX futures are forming a bearish shooting star.
The STOXX Europe 600 Index fell for the first time after a five day rally which included a breakaway gap, suggesting a pullback within the rally.
Bank shares weighed on the pan-European index, as Lloyds Banking Group PLC (LON:LLOY), (NYSE:LYG) dropped after a stinging report by Citigroup indicated the UK-based lender had the worst performance in a BoE stress test. Consumer goods declined as well, after Unilever (NYSE:UL) warned about lagging sales growth.
Earlier today, before the negative sentiment took hold, Asian benchmarks closed almost entirely in the green, with Australia’s ASX 200 the only major index to slip slightly into the red (-0.04%). China’s Shanghai Composite, (+1.27%), and South Korea’s KOSPI, (+1.27%), equally outperformed.
Yesterday, Wall Street, still drunk on earlier euphoria from the possible resolution of the U.S.-China Phase 1 deal, started the trading week on a positive footing: the S&P 500, NASDAQ and Dow all carved out new records. Adding to the mood, the NY Empire State Manufacturing Index came in below forecasts, but still reached a five month high.
The dollar gained, finding resistance at the October and November lows, after falling below the 200 DMA, with the 50 DMA rushing toward it for a possible death cross.
Fresh from his resounding election victory, UK Prime Minister Boris Johnson said "he will use his control of parliament to outlaw any extension of the Brexit transition period beyond 2020," which would revive the possibility of a no-deal Brexit. The pound sank.
West Texas Intermediate crude is hovering near a three-month high.
In the precious metals market, palladium surged, breaking through $2,000 an ounce to hit a new record amid a global shortage. Technically, the price has slowed for a third day, after breaking out of a bullish pennant, ahead of the top of a falling triangle since late-April.
h2 Up Ahead/h2Stocks
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.