Global shares ‘mixed’ as all eyes turn from trade to impeachment
Crude oil prices dip, dollar up
NEW YORK, Dec 18, (AP): Global shares were mixed Wednesday as investor optimism fades about last week’s US-China trade breakthrough and all eyes turn to US politics, where President Donald Trump is on the cusp of being impeached by the House.
According to a tally compiled by The Associated Press,Trump is on track to be formally charged Wednesday by a House majority that he abused his power and obstructed Congress. Trump would bejust the third US president to be impeached.
If Trump is impeached, a trial in the Republican-held Senate would follow, where most expect he would be acquitted. “Republicans are certain to stay loyal to the President and the impeachment process is not expected to yield any major market reactions,” wrote Edward Moya, analyst with Oanda.
France’s CAC 40 moved from small gains to losses in midday trading at 5,967, while Germany’s DAX slipped 0.3% to 13,249. Britain’s FTSE 100 edged up 0.1% to 7,532.
US trading was sluggish but shares were set to drift slightly higher with Dow futures inching up less than 0.1% to 28,295. S&P 500 futures were also slightly higher at 3,196.
Japan’s benchmark Nikkei 225 fell 0.6% to finish at 23,934.43. Australia’s S&P/ASX 200 gained nearly 0.1% to 6,851.40. South Korea’s Kospi inched down to 2,194.76. Hong Kong’s Hang Seng recouped earlier losses and edged up 0.2% to 27,884.21, while the Shanghai Composite fell 0.1% to 3,017.04. Shares were higher in Thailand, India, Indonesia and the Philippines.
Wall Street extended its milestoneshattering run Tuesday, nudging the major indexes to record highs.
The S&P 500 had its fifth gain in a row, adding less than 0.1% to 3,192.52. With less than three weeks left in 2019, the index is up 27.4% for the year. The benchmark index and the Nasdaq closed at new highs for the fourth straight day, with the Nasdaq climbing 9.13 points or 0.1% to 8,823.36.
The Dow Jones Industrial Average rose 31.27 points, or 0.1%, to 28,267.16, also a record high, its second milestone this week.
A Federal Reserve meeting last week also spurred buying after investors saw signals from Chairman Jerome Powell that interest rates will stay low for a while.
“A lot of the strength that we’re seeing is just a continuation of the ‘Phase 1’ US-China deal from last week and some potential clarity around Brexit,” said Jamie Lavin, global investment specialist at J.P. Morgan Private Bank.
The US and China agreed last week to cut tariffs on some of each others’ goods and postpone other tariff threats. The interim trade deal has helped ease a key source of uncertainty for investors heading into next year.
The latest batch of economic data also helps buttress traders’ confidence in the health of the US economy. In August, fears that the US was headed for recession roiled markets.
The Fed said Tuesday that industrial production and manufacturing were stronger last month than economists expected, though they are weaker than a year ago. US housing data were also stronger than expected.
Benchmark US crude lost 26 cents to $60.68 a barrel. It rose 73 cents to $60.94 per barrel Tuesday. Brent crude, the international standard, fell 9 cents to $66.01 per barrel.
The dollar rose to 109.56 yen from 109.49 yen on Tuesday. The euro slipped to $1.1125 from $1.1151.
US
A rally for US stocks came closer to fading out on Wednesday, with indexes stalling near their record levels, but the S&P 500 clung to a chance for its longest winning streak in eight months.
Stocks have jumped recently on optimism around a “Phase 1” trade deal announced last week between the United States and China, among other factors. But after five straight days of gains, the S&P 500 has less fuel to push higher.
FedEx slumped sharply after it cut its profit forecast for its fiscal year and reported weaker quarterly earnings than analysts expected. It cited “weak global economic conditions” and higher expenses. Cigna, though, jumped after it agreed to sell its group life and disability coverage business for $6.3 billion.
Stock markets overseas were mixed, with most making only modest moves in a relatively quiet day of trading. Treasury yields were steady, and the price of crude oil headed for its first drop in five days.
FedEx slumped 9. 1 % for the biggest loss in the S&P 500 after it reported revenue and earnings for the latest quarter that fell short of analysts’ expectations. The company cited pressure on prices, among other factors.
FedEx’s woes also pulled UPS lower. The stock gave up 1.8% for one of the larger losses in the S&P 500.
General Mills rose 1.6% after it reported stronger profit for the latest quarter than analysts expected. The company behind Haagen-Dazs ice cream and Yoplait yogurt said its sales were flat from a year ago, which was a touch weaker than analysts expected, but it made more in profit from each $1 in sales than Wall Street forecast.
Cigna rose 2.8% after it said it plans to use the $5.3 billion in aftertax proceeds from the sale of its group life and disability coverage business to buy back its stock and pay down debt. Cigna increased its stock repurchase program by $3 billion to a total authorization of $4 billion.
Cintas jumped 4.6% to the biggest gain in the S&P 500 after it reported stronger earnings and revenue for the latest quarter than Wall Street expected. The company, which provides uniforms, restroom supplies and other products for businesses, also raised its
profit forecast for the fiscal year
Asia
Asian shares were mostly lower Wednesday after Wall Street logged
fresh record highs as investor optimism faded about an interim USChina trade deal announced last week.
Japan’s benchmark Nikkei 225 fell 0.5% to 23,935.44. Australia’s S&P/ASX 200 gained nearly 0.1% to 6,851.40. South Korea’s Kospi was little changed but inched down to 2,195.29. Hong Kong’s Hang Seng lost 0.2% to 27,802.23, while the Shanghai Composite fell 0.3%, to 27,802.23. Shares were higher in Thailand, India and Indonesia but lower in the Philippines.
Wall Street extended its milestoneshattering run Tuesday, nudging the major indexes to more record highs.
The S&P 500 had its fifth gain in a row, adding less than 0.1% to 3,192.52. With less than three weeks left in 2019, the index is up 27.4% for the year. The benchmark index and the Nasdaq closed at new highs for the fourth straight day. The Dow Jones Industrial Average also closed at a record high, its second milestone this week.
“The after-effects of Japan’s sales tax increase, a slowdown in global trade and smoke and mirrors on the latest stimulus package continue to make their presence felt,” Jeffrey Halley of Oanda said in a commentary.
The US and China agreed last week to cut tariffs on some of each others’ goods and postpone other tariff threats. The interim trade deal has helped ease a key source of uncertainty for investors heading into next year.