U.S. indices sit at all time highs – but where now?

Bull market

The DOW at a jackpot high! The DOW, S&P 500 and Nasdaq have recently touched all time highs but where now for the U.S. stock market? Is it time for a breather? More upside? Many analysts suggest there is still room for more gains, especially for the S&P 500 – but I’m not so sure. I feel a 100% gain for the S&P 500 since the March 2020 pandemic drop may indicate it is vey close to a top in this cycle. Job creation, economic data, good company results and…

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U.S. earnings reports due

Earnings reports

Earnings season As fears of the coronavirus outbreak push global stocks into reverse, U.S. companies prepare to unleash their results on the markets. Fourteen of the thirty companies making up Dow Jones industrial Average (DJIA) are due to report this week including Apple and Microsoft. S&P 500 The S&P 500, not wishing to be left out of the reporting frenzy, is also due to report this week. Results from 141 of the S&P 500 will be released, including, Facebook, Amazon, AMD and Tesla. So far, around a third of the…

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Stock Market News – Friday 24th January 2020

Stock markets up

UK FTSE 100 is cheerful today as data shows service sector returned to growth Purchasing Managers’ Index – PMI – for January came in at of 52.4, ( a sixteen month high) and up from December’s figure of 49.3. A figure of 50 or above indicates expansion. The FTSE 100 climbed to touch 7643 in early morning trade. EU – Eurozone manufacturing and services output remained stable The latest PMI surveys for the Eurozone show that manufacturing and services output growth remained stable in January. Purchasing Managers’ Index remained unchanged…

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Market news roundup in brief – Thursday 23rd January 2020

Stock Market

Scheduled events Australia unemployment data comes in far better than expected creating nearly 29,000 jobs against consensus of 15,000. EU – ECB interest rate decision due at: 12:45 GMT followed by monetary policy statement at: 13:30 GMT U.S. – Unemployment ‘jobless’ claim data due at: 13:30 GMT Japan – BoJ monetary policy meeting minutes due to be released today. Other market news China – Asian stocks fall on fear of virus outbreak spreading. UK Mothercare – closed all its 79 UK stores earlier this month, but is still trading as…

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Economic news update – Tuesday 22nd January 2020

Global economy

Scheduled events 22nd January 2020 World Economic Forum at Davos. UK public sector net borrowing data due. Canada price index data and interest rate decision due. U.S. housing data. Shares in Asia made gains, as earlier investor concerns about the coronavirus in China eased. Netflix results Netflix reported results for the last three months of 2019 – revenue of $5.47 billion, slightly above the $5.45 billion predicted by analysts. The company also said it expects slower growth in the number of new subscribers in 2020. Boeing has said it doesn’t…

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Iran targets U.S. troop bases in Iraq with missile strikes

US and Iran conflict

Missile strikes Iran’s retaliation for the killing of its top military general came overnight as a number of missiles struck two U.S. bases in Iraq. Early reports appear to suggest that there were no casualties. President Trump tweeted, ‘All is Well!’ Oil prices increased as equities fell. Asian stocks pulled back with Japan’s Nikkei index down some 500 points in intra-day trading – later to close down at: 23205. U.S. stock futures fell too with the Dow falling some 400 points at one point as the news broke. Resilient However,…

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U.S. third quarter GDP better than expected at 1.9% Wednesday 30th October 2019

U.S. GDP

Third quarter GDP slightly higher than forecast Economic activity in the U.S. grew at an annualised rate of 1.9% in the third quarter. Analysts had expected the GDP figure to come in at 1.7%. The previous quarter was 2%. The better than expected figure was the result of continued consumer spending as well as government spending. The Federal Reserve interest rate decision is up next at: 18:00 GMT

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Federal Reserve to announce rate decision Wednesday 30th October

Federal Reserve

Another rate cut likely – and then what…? How likely is it that the Federal Reserve will cut interest rates for the third time in a row as US stock markets touch all time records? The general consensus among market analysts and pundits alike appear to suggest a cut is widely expected. Indeed, the percentage probability hit around 90% in favour of a 0.25% interest rate cut last week. However, with the U.S. markets in ‘full steam ahead’ mode and the S&P 500 touching a new all time high –…

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Election or referendum by proxy. Will December election break Brexit deadlock?

Election

Finally the UK parliament makes a positive move to back Boris Johnson’s call for a December election. Will it deliver an opportunity to break the Brexit deadlock or will it deliver yet more uncertainty? Referendum by proxy? My worry is that the UK public will see this as a second referendum. But at least the voter will be better informed this time round – won’t they? ‘Flextension’ On Monday, the EU agreed to postpone Brexit day until 31st January 2020 to give the UK PM time to persuade members of…

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ECB holds interest rate at historic low as Mario Draghi departs

European Central Bank

ECB holds rates at 0% and keeps its forward guidance unchanged The European Central Bank (ECB) kept rates unchanged on Thursday, in what marked President Mario Draghi’s last monetary policy meeting before Christine Lagarde takes over. Lower growth The euro zone is seeing lower growth – in part held back by global trade tensions, a weaker manufacturing sector, and other economic uncertainties, such as Brexit. The current ECB deposit rate is -0.5%, the lowest on record. We’ll leave the debate on negative rates for another time – but it’s not good and…

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