Wall street posted record highs on Monday after Trump’s comments over the weekend. US President Donald Trump said on Saturday that the US and China will be signing their phase one trade agreement very soon, uplifting stocks around the globe. Boeing shares gained 2.9% and boosted the DJIA as well after it announced the ousting of CEO Dennis Muilenburg following the Boeing 737 Max crisis. The Nasdaq reached an all-time high for the eighth straight session.
The greenback fell thanks to disappointing US durable goods orders data. November's durable goods orders suffered a massive decline in the US, sinking 2.0% instead of the expected 1.5% growth that economists forecast. One of the biggest contributing factors was that 52 out of 63 gross orders that Boeing reported for November were cancelled, likely due to the ongoing 737 Max woes. While core capital goods rose in line with forecasts at 0.1% (and 1.1% in the prior month), it remains weak going into 2020. The downward revision (from 0.5% to 0.2%) in October’s durable goods orders growth also weighed on the dollar.
Meanwhile safe haven assets gained thanks to the weak economic data. Gold and the yen both gained as a result of the weaker greenback, while US treasuries retreated slightly.
Asian indices started Tuesday's trading session slightly higher but retreated later in the day. The Nikkei and Straits Times Index opened the day higher by 0.08% and 0.13% on Tuesday morning, while the Hang Seng Index was 0.02% lower. The Nikkei and Hang Seng Index fell later in the morning.
Trading volume in stock markets is likely to continue to fall below average heading into the holiday week. Approximately only 5.9bn shares were traded on US exchange on Monday, below the 7.2bn daily average over the last 20 sessions.