Market Headlines – 19/12/2017

US

• US stocks gained 0.5% yesterday, buoyed by optimism surrounding the tax reform agenda. Gains for the index were broad based across sectors, with Materials and Telecoms the standout performers and Utilities the primary laggard.
• Technology stocks also enjoyed a positive session, highlighted by the fact that the Nasdaq index broke the 7,000 level for the first ever time intra-day before settling marginally below that level. The tech-laden Nasdaq index has gained 31% this year.
• In fixed income markets, the yield on US 10-year bonds jumped 4bps (prices fell) following news of progress on the tax reform bill. The US dollar dipped 0.2% against a basket of peers.

Europe

• European equities enjoyed a very strong session yesterday, taking the lead from the strong US close on Friday and further supported by US tax reform newsflow.
• The Euro Stoxx 50 index gained 1.4%, the German DAX index rose a similar 1.6% and the French CAC gained 1.3%.
• Portuguese debt outperformed after Fitch’s two-notch upgrade late on Friday, removing the country from ‘junk’ status and adding to optimism over its strong recovery after a bailout six years ago.

Asia

• A mixed session in Asian overnight. Chinese stocks gained close to 1% while Japanese shares traded marginally lower.