Wed, 17 Jul 2019

U.S. stock markets close out week with on positive note

By Jay Jackson, Philippines News
17 Nov 2018, 07:11 GMT+10

NEW YORK, New York – U.S. industrial stocks gained ground on Friday with news that President Trump was considering not imposing additional tariffs on Chinese imports.

The president revealed he had received a list of measures China was prepared to implement to address U.S. concerns. Mr Trump said while the list was very encouraging there were some major items it omitted. He conceded though that progress had been made, enabling him to forestall $267 billion new tariffs that were widely expected to be introduced.

"I think a deal will be made," Trump said Friday. "We'll find out very soon."

Trade tensions and tit-for-tat tariffs by the two super economic powers have rattled global stock markets in recent weeks.

Tech stocks meantime remained soft on Friday, however downward movements were limited.

At the close of trading Friday, the Dow Jones industrials were ahead 123.95 points or 0.49% at 25,413.22.

The Standard and Poor's 500 gained 6.07 points or 0.22% to 2,736.27.

The tech-laden Nasdaq Composite declined 11.16 points or 0.15% to 7,247.87.

On foreign exchange markets the U.S. dollar continued to be sold off. The euro roared above the 1.1400 handle to finish the New York session on Friday around 1.1413.

The British pound consolidated, and actually rose as pundits predicted Theresa May would survive any leadership talk and would ultimately prevail with her cabinet-approved deal with the European Union. Sterling finished the day around 1.2825.

The Swiss franc was in strong demand, rising to 0.99998, while the Canadian dollar strengthened to 1.3155.

The Australian dollar was the star performer of the day, likely in recognition that any breakthrough in trade tensions between the U.S. and China would benefit Australia. The Australian dollar was last quoted at 0.7332, for a gain or more than half-a-cent on the day.

The New Zealand dollar was in demand, changing hands at the New York close on Friday around 0.6881.

Overseas markets were mixed on Friday with European bourses dipping moderately while a number of Asian stock markets gained ground.

In London, the FTSE 100 was down 24.13 points or 34% at 7,013.88.

The German Dax lost 12.67 points or 11% to 11,341.00.

The Paris-based CAC 40 gave up 8.42 points or 17% to 5,025.20.

In Asian markets, the Australian All Ords was little changed at the close on Friday. Having lost just 2.40 points or 0.04%, the index finished at 5,822.80. Over the course of the week however the bourse lost around $54 billion of its capitalisation.

The S&P/ASX 200 Index closed the week down 191.3 points, or 3.2% at 5730.6, while the All Ordinaries Index fell 188.2 points, or 3.1% to 5,822.80.

"'Risk off' returned with a vengeance to financial markets over the last week with most share markets falling and bond yields declining as last month's worries returned," AMP Capital chief economist Shane Oliver told The Sydney Morning Herald on Friday. "Tech stocks came under renewed pressure and the continuing plunge in the oil price weighed on energy shares."

Elsewhere in Asia, the Nikkei 225 in Japan fell 123.28 points or 0.57% to close at 21,680.34.

In China, the Shanghai Composite was up 10.93 points or 0.41% at the close, at 2,682.05.

In Hong Kong, the Hang Seng closed up 80.19 points or 0.31% at 26,183.53.

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