Market Headlines – 29/11/2017

US

• Stocks on Wall Street rose to fresh record highs yesterday, with Financials leading indices higher following testimony by Jerome Powell – President Trump’s Fed Chair nominee – before the Senate banking committee. Mr Powell set the stage for further rate rises and said the existing rules on banks were “tough enough” to ensure a stable system.
• The S&P 500 gained 1% for the session. Financials were the biggest gainer, rising 2.6%, while Industrials and Consumer stocks also put in a strong session. News of a ballistic missile launch by North Korea failed to arrest the move higher in US equities.
• Oil prices fell 0.4% amid uncertainty on whether Saudi Arabia and Russia will agree to extend production cuts following the recent recovery in the underlying commodity since the cuts were initiated.

Europe

• European equities also participated in the pro-risk session, gaining between 0.5% and 1.0%. The Euro Stoxx 50 index gained 0.5%, the German DAX index rose 0.5%, the French CAC gained 0.6% and the Spanish IBEX closed 0.8% higher.
• Global mining stocks came under pressure on growing concerns on demand from China. President Xi has said that he wants to cut back on inefficient metals production for environmental reasons.
• London’s FTSE 100 rose 1% despite the week session for mining stocks. The index benefited from a rally for Royal Dutch Shell after well-received earnings and a rally for banks after reassuring results in the Bank of England’s stress tests of the sector.

Asia

• Asian equities traded higher this morning despite the news of a ballistic missile launch from North Korea. Japanese stocks rose 0.5%, with Financials and Consumer Discretionary among the sessions biggest gainers, while Chinese equities closed marginally higher.