US stocks recover as upbeat earnings offset coronavirus fears

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Dollar strengthening continues
US stock market recovered on Thursday as positive corporate reports offset concerns over coronavirus infection in China. The S&P 500 gained 0.3% to 3283.66. The Dow Jones industrial average rose 0.4% to 28859.44. Nasdaq composite index added 0.3% to 9298.93. The dollar strengthening halted despite report US gross domestic product grew at stead 2.1% annualized pace in the fourth quarter and the number of people applying for first time jobless benefits fell by 7,000 to 216,000 last week: live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lostg 0.2% to 97.86 but is higher currently. Futures on stock indexes point to mixed openings today.

European indexes retreated in lockstep
European stocks pulled back on Thursday. Both the GBP/USD and EUR/USD reversed their sliding yesterday with euro turning lower while Pound higher currently still. The Stoxx Europe 600 index declined 1% led by energy shares. Germany’s DAX 30 fell 1.4% to 13157.12. France’s CAC 40 lost 1.4% while UK’s FTSE 100 slumped 1.4% to 7381.96 as the Bank of England kept the base rate at 0.75%.

EU50 falling below MA(50) 1/31/2020 Market Overview IFC Markets chart

Nikkei ahead of Asian indexes
Asian stock indices are mixed today after the World Health Organization declared the outbreak to be a global health emergency. Nikkei ended up 1% at 23205.18 with yen resuming its decline against dollar. Markets in mainland China are closed for extended Lunar New Year holidays. Hong Kong’s Hang Seng Index is 0.1% lower despite report China's official nonmanufacturing PMI edged up. Australia’s All Ordinaries Index recovered 0.1% as Australian dollar decline against the greenback continued.

Brent down
Brent futures prices are extending losses today. Prices ended lower yesterday: March Brent crude lost 2.5% to $58.29 a barrel on Thursday. Saudi Aramco shares closed 0.7% lower Thursday at 34.15 riyals in Riyadh at Tadawul exchange. Yesterday a Saudi oil official said Yemen’s Houthi rebels launched a missile attack on Saudi Aramco, but all projectiles were intercepted before they could hit their target in the southern Jazan region. No date was specified for the attack.

Gold retreats
Gold prices are retracing today. Prices rose yesterday: February gold added 0.8% to $1589.20 an ounce on Thursday.