Sharechat Logo

Stocks Reach Record Highs After China’s Moves, Fed

Thursday 20th February 2020

Text too small?

Equities advanced on signs that China may be planning further measures to support its economy as it reels from a virus-induced slowdown and after Federal Reserve officials signaled they aren’t anxious to raise interest rates anytime soon.

Gains for chipmakers and banks led the S&P 500 Index and Nasdaq Composite toward records after Bloomberg News reported that China’s latest moves to aid growth include possible bailouts for hard-hit industries. The dollar climbed to a four-month high after data on housing starts and building permits exceeded analysts’ estimates. Treasuries held steady after minutes showed Federal Reserve officials viewed monetary policy as appropriate “for a time.”

The Stoxx Europe 600 Index reached new highs, and shares rose in Tokyo, Hong Kong and Sydney. The yen fell to a nine-month low on concern Japan’s economy may slip into a recession. Oil gained as U.S. sanctions on Russia’s largest producer and conflict in Libya put the focus on supply threats.

Investors appear relatively confident in the ability of policy makers to contain fallout from the deadly coronavirus, even after Apple Inc. spooked markets earlier this week by warning of a slowdown in sales. Data released Wednesday showed the the housing market remains a bright spot for the U.S. economy amid sluggish business investment.

“Housing is an economic bellwether and seeing data like this gives investors a lot of reasons to be optimistic, at least for the U.S. market,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial.

Elsewhere, gold traded near its highest level since 2013, while palladium extended its record-breaking rally on forecasts for a widening supply deficit.

(Bloomberg)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020
General Capital gives notice of Annual Meeting
Scales Corporation - Business Update
Fonterra Co-operative Group Global Dairy Update
Fonterra revises its 2019/20 and 2020/21 forecast Farmgate Milk Price ranges
Briscoe Group Limited Market update: 2nd Quarter Sales to 26 July 2020
thl market update - A frame work for 2021
Me Today - Outcome Of Share Purchase Plan Offer

IRG See IRG research reports