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Global Stock Gains Build on Economic Optimism: Markets Wrap

Published 01/16/2020, 07:11 PM
Updated 01/16/2020, 09:09 PM
© Reuters.  Global Stock Gains Build on Economic Optimism: Markets Wrap
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(Bloomberg) -- Asian stocks climbed and the global record-setting rally showed little sign of letting up amid signs of strong American consumer demand. Treasuries dipped after the Treasury announced issuance plans.

Shares opened higher in Japan, South Korea and Australia. Futures on the S&P 500 nudged up after the gauge on Thursday climbed to a fresh all-time high. Helping sentiment: data showed U.S. retail sales strengthened in December. Technology shares advanced and Alphabet (NASDAQ:GOOGL) Inc.’s market valuation hit $1 trillion for the first time. Treasuries slipped as the Treasury said it will start issuing 20-year debt in the first half of 2020 as its expands its roster of securities.

With an initial trade deal between the U.S. and China now signed and investor optimism over easing tensions helping to drive global equities to record highs, attention is turning to corporate and economic data. Friday brings China GDP, along with key monthly data for December, and the earnings season continues to ramp up with the likes of Procter & Gamble Co. and Intel Corp (NASDAQ:INTC). reporting next week.

“It’s very hard to be bearish here,” Linda Duessel, senior equity strategist at Federated Investors Management Co., told Bloomberg TV. “We could have really good earnings surprises to the upside,” as more profit reports roll in, she said.

Elsewhere, crude oil edged higher, while gold was steady above $1,500 an ounce.

These are some of the main moves in markets:

Stocks

  • Futures on the S&P 500 Index gained 0.1% as of 9:01 a.m. in Tokyo. The underlying gauge rose 0.8% on Thursday.
  • Japan’s Topix index gained 0.5%.
  • South Korea’s Kospi index advanced 0.6%.
  • Australia’s S&P/ASX 200 Index rose 0.6%.
Currencies

  • The yen was at 110.22 per dollar.
  • The offshore yuan held at 6.8775 per dollar.
  • The euro bought $1.1136, little changed.
Bonds

  • The yield on 10-year Treasuries rose one basis point to 1.82%.
  • Australia’s 10-year yield remained at 1.18%.
Commodities

  • West Texas Intermediate crude oil rose 0.2% to $58.62 a barrel.
  • Gold dipped less than 0.1% to $1,552.22 an ounce.

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