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.

 

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