Market Headlines – 22/11/2017

US

• A strong session for Technology and Healthcare companies helped push the S&P 500 to a record closing high. The index gained 0.7%, briefly rising above the 2,600 level for the first time.
• Positive economic data and strong company results provided further support for equities. Existing home sales rose 2% last month, easily beating expectations, providing an indication of a strong underlying US economy.
• The dollar fell 0.2% against a basket of peers. In the US bond market, the yield curve flattened further as 2-year bonds yield rose 2bps while 10-year yields rose 1bps.

Europe

• European stocks also put in a strong performance while the euro steadied after Monday’s volatile session. The Euro Stoxx 50 index gained 0.5%, the German DAX rose 0.8%, with carmakers among the day’s biggest gainers, and the UK’s FTSE 100 settled 0.3% higher.
• The highlight for today is likely to be the UK budget. Recent data highlighting that the UK’s deficit unexpectantly widened in October likely puts additional pressure on Chancellor Hammond. The budget speech is due to be delivered at about 12:30pm today.

Asia

• Markets traded higher in Asia this morning, following the lead from the positive US and European sessions. Japanese equities rose 0.5%, with Energy and Technology among the session’s biggest gainers.