The MSCI global stock index ended Wednesday’s choppy trading session with a small gain as worries over US politics, global economic growth and trade tensions were countered by a boost from quarterly earnings reports. However, the US dollar and oil prices declined.
US Treasury yields climbed but analysts expect the $15.6 trillion market to be confined within a tight trading range due to a dearth of fresh economic data amid the longest-ever US government shutdown. The US dollar edged lower against a basket of currencies as uncertainty over trade and the global economy clouded the greenback’s near-term outlook and restricted it to tight trading ranges against other major currencies. After falling more than 1 per cent in the previous day’s session, Wall Street indexes zig-zagged.
Strong quarterly reports from Procter & Gamble, Comcast Corp and International Business Machines helped the Dow show the biggest gains of the day. But US political uncertainty weighed heavily on investors. White House economic adviser Kevin Hassett said in a CNN interview the US could see zero growth in the first three months if the partial government shutdown is extended for the whole quarter. US President Donald Trump and US House of Representatives Speaker Nancy Pelosi argued publicly over whether Trump can deliver the annual State of the Union address in the House chamber during the shutdown.
The Dow Jones Industrial Average rose 171.14 points, or 0.7 per cent, to 24,575.62, the S&P 500 gained 5.8 points, or 0.22 per cent, to 2,638.7 and the Nasdaq Composite added 5.41 points, or 0.08 per cent, to 7,025.77. MSCI’s gauge of stocks across the globe rose 0.1 per cent, after the pan-European STOXX 600 index lost 0.06 per cent.
Morning-Market-Note-Thursday-24th-January