Monday, December 30, 2019

S&P500 looks set for record annual gains; Dollar suffers sharpest decline since October

Tags
  • Dollar
  • Stocks
  • Federal Reserve
  • Nasdaq

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Market Recap: S&P500 looks set for record annual gains; Dollar suffers sharpest decline since October

US equities ended the day mixed on Friday thanks to increasing optimism for the US-China phase one trade deal. Major US indices advanced early in the day but retreated slightly before US markets closed for the day. The S&P500 inched slightly higher to gain 29.25% YTD, set to make its biggest annual returns since 2013. The Nasdaq ended its 11-day winning streak and retreated 0.17%.

Indexes Change (%) Net Change Closing Price
Dow Jones 0.08 23.87 28,645.26
S&P500 0.00 0.11 3,240.02
Nasdaq -0.17 -15.77 9,006.62
*Source: Bloomberg

Global indices gained over the past week as investor sentiment picked up. The Nasdaq led US major indices with gains from Apple, Amazon and Microsoft over the week. In Asia, the Hang Seng Index led gains despite continued protests in the financial hub over the Christmas holiday.

Indexes Weekly return (%) Weekly Change Closing Price
Dow Jones 0.67 190.17 28,645.26
S&P500 0.58 18.80 3,240.02
Nasdaq 0.91 81.66 9,006.62
FTSE100 0.82 62.42 7,644.90
Nikkei 0.09 21.09 23,837.72
Hang Seng 1.27 354.07 28,225.42
Straits Times 0.44 14.14 3,226.53
*Source: Bloomberg

In the forex market, the dollar fell sharply against major currencies as growing risk appetite puts downward pressure on the safe haven aspect of the greenback.

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Demand for other safe haven assets also fell on Friday, with gold and silver both suffering losses even after the dollar fell sharply. The yen rose against the dollar but fell against the euro. US Treasury yields fell, with two-year yields falling the most by 5bps.

Safe Haven Assets Change (%) Net Change Closing Price
Gold -0.06 -0.97 1,510.56
Silver -0.73 -0.13 17.75
JPY 0.17 0.19 109.44
*Source: Bloomberg
US Treasury yields Change (bps) Yield (%)
2-Year -5 1.58
10-Year -2 1.88
30-Year -1 2.32
*Source: Bloomberg

Asian stocks drifted lower on Monday but looks set to make strong gains in 2019. The Nikkei and KOSPI opened 0.28% and 0.07% weaker, while the ASX200 and Straits Times Index fell later in the morning. But US equity futures remain strong, with futures tracking the three major US indices in the green on Monday morning.

Asia Change (%) Net Change Last Price As of (GMT +8)
Nikkei Index -0.55 -130.91 23,706.77 9:01:50 AM
KOSPI Index -0.02 -0.39 2,203.82 9:21:50 AM
ASX200 Index -0.53 -36.453 6,785.20 9:21:35 AM
Straits Times Index -0.01 -0.17 3,226.36 9:06:55 AM
Hang Seng Futures 0.04 10.00 28,229.00 2:59:54 AM
*Source: Bloomberg
US Futures Change (%) Net Change Last Price As of (GMT +8)
Dow Futures 0.08 23.00 28,633.00 8:56:18 AM
S&P500 Futures 0.10 3.25 3,240.75 8:56:18 AM
Nasdaq Futures 0.14 12.25 8,795.50 8:56:19 AM
*Source: Bloomberg

Trading volumes is expected to remain low this week thanks to the New Year's holiday. But the FOMC's December monetary policy meeting minutes and US's ISM Manufacturing PMI for December will be the focus as investors return from the holiday break.