|Day's range||1.8160 - 1.8500|
|52-week range||1.4290 - 2.7790|
Global markets were subdued Thursday after the signing of a preliminary China-U.S. trade agreement that investors hope will bring better relations between the world's two biggest economies. U.S. President Donald Trump and China's chief negotiator, Liu He, signed the “Phase 1" deal on Wednesday before a group of corporate executives and reporters at the White House. The pact eases some sanctions on China.
There was nothing in the Beige Book to suggest a change in Fed policy. Even with the signing of the trade deal between the United States and China on Wednesday, Fed policymakers are likely to maintain their wait and see approach.
Key world equity indexes climbed to new records on Wednesday on hopes a U.S.-China trade deal will reduce harmful tensions, but oil prices slid on doubts the pact will spur world growth and boost crude demand. U.S. President Donald Trump and Chinese Vice Premier Liu He signed a Phase 1 deal that will roll back some tariffs and see China boost purchases of U.S. goods and services, defusing a prolonged conflict between the world's two largest economies. Liu said in remarks at the White House that the United States and China need to step up cooperation, and that the deal benefits both countries and the world.
The December jobs report highlighted disappointing wage growth data, showing average hourly earnings rose by only 2.9% over last year and dipped below 3% for the first time in more than a year.
US stocks touched record intraday highs but lost ground after reports that American tariffs on Chinese goods will remain until after the November presidential election. The S&P 500 and Nasdaq Composite ...
Asian shares followed Wall Street higher on Tuesday amid optimism that a trade deal between the U.S. and China will be a boon for the regional economy. Monday's rally on Wall Street added to gains from last week driven by an easing of tension between the U.S. and Iran. Investors are now looking ahead to the signing of an initial trade deal between Washington and Beijing and the potential for future talks.
The U.S. labor market capped off 2019 with fewer job gains than expected and decelerating wage growth. The joblessness rate, however, held at a 50-year low.
Asian shares rose Friday as worries receded the United States and Iran might be stepping closer to the edge of war, and U.S. indexes hit records. On Wall Street, money flowed into riskier investments, such as technology stocks, and trickled out of traditional hiding spots for investors when they’re nervous, such as gold. A measure of fear in the stock market had its largest drop in a week.
The US corporate debt market has continued its strong rally of December into the new year, in a reflection of geopolitical tensions and expectations that the Federal Reserve will not be raising interest rates any time soon. The yield on a widely watched high-yield bond index run by Ice Data Services dropped to 5.34 per cent at the end of last week, its lowest level in more than five years. The yield on a separate Ice index tracking investment-grade bonds sank to 2.82 per cent on Friday, its lowest level since September 2016.
Don’t be surprised if volatility remains at heightened levels throughout the year. Last year, stock market investors dodged a bullet. There were no 10% corrections in the U.S. indexes. That may change in a hurry this year with the impact of the escalation in U.S./Iran tensions.
Even as uncertainties flare over when at how Iran will retaliate after a U.S. airstrike took out one of its top Iranian military commanders, markets have taken hold of two grounding principles, according to Mohamed El-Erian.
An escalation of hostilities after a U.S. airstrike killed a top Iranian military commander could send shockwaves through the global economy, according to analysts.
Wall Street closed the books Tuesday on a blockbuster 2019 for stock investors, with the broader market delivering its best returns in six years. The S&P 500 finished with a gain of 28.9% for the year, or a total return of 31.5%, including dividends. The Nasdaq composite rose 35.3%.
“There could be a few big institutions out there that are taking some profits,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “While (manufacturing) only represents about 12% of the economy, it tends to be much more of a leading indicator versus the services sector,” he said.
Tuesday’s drought of economic reports and corporate earnings releases will leave investors with little new data to digest as hopes run high for an end-of-year rally to come through.
The Bureau of Economic Analysis (BEA) will release its monthly report on personal consumption expenditures (PCE) at 8:30 a.m. ET Friday, which will likely show just a mild uptick in underlying prices.