Thursday 23rd January 2020
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Technology shares rallied on the back of upbeat earnings and after the U.S.
and France struck a deal on digital taxation. Oil tumbled on concern the
market is oversupplied.
The Nasdaq Composite Index headed for a record and the S&P 500 edged
higher after France agreed to delay collecting a tax on multinational digital
companies, possibly averting a transatlantic trade war. Gains were limited
by concern about the potential impact of a deadly respiratory virus that
originated in China, even as the country moved to contain the outbreak.
IBM gained after revenue beat estimates. Tesla Inc.’s market value soared
past $100 billion.
With stocks trading near records, investors are on alert for any
developments that could derail the momentum and had taken a cautious
stance amid concern the virus that originated in China and has already
killed 17 people could turn into a global pandemic that dents economic
growth. A sense that China is coming to grips with containing the illness
gave traders the chance to hunt for bargains following yesterday’s declines.
“The market seemingly wants to look at the positive and recover quickly as
soon as it gets a chance,” Ann Miletti, head of active equities at Wells Fargo
Asset Management, said in an interview at Bloomberg’s New York
headquarters. “Clearly fiscal and monetary policy set us up pretty well for
the growth that we will likely see in earnings for 2020.”
Bob Prince, co-chief investment officer at Bridgewater Associates, discusses
the end of the boom-bust cycle, finding opportunity in market stability, and
the firm’s investment strategy. He speaks at the World Economic Forum’s
annual meeting in Davos, Switzerland.
Elsewhere, Chinese shares eked out a gain and the yuan steadied after
Beijing said it will start a nationwide screening effort to tackle the outbreak
of the Wuhan virus. The Stoxx Europe 600 Index dipped as Italian banks
slumped amid a fresh bout of political turmoil.
West Texas oil fell below $58 a barrel as ample global supplies offset the
loss of exports from Libya. The pound strengthened after Prime Minister
Boris Johnson’s Brexit deal cleared its final hurdles in Parliament.
No comments yet
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