Global Stocks Mixed on Last Day of Exceptional Year
2019年12月31日 - 10:14PM
Dow Jones News
By Anna Hirtenstein
Global stocks were mixed and the dollar extended its fall
Tuesday as investors wrapped up trading after one of the best
annual market performances in years.
The Stoxx Europe 600 was little changed, slipping 0.1%, and the
U.K.'s FTSE 100 declined 0.4%. Auto maker Renault fell 0.4% after
its former chief executive Carlos Ghosn fled to Lebanon to avoid
trial in Japan. Futures tied to the Dow Jones Industrial Average
index were little changed.
"Despite a tricky macro backdrop, it's been a very, very good
year for global markets," said Emma Wall, head of investment
analysis at Hargreaves Lansdown. "What we're seeing today is likely
a slight drawback in that euphoria as what's supporting that rally
isn't necessarily rock solid," she said, referring to the mixed
economic outlook for 2020.
Global markets were roiled by political events in 2019,
including the U.S. trade war with China and the U.K.'s
politically-snarled process to leave the European Union. Despite
this, U.S. stock markets were set to have the best year since 2013,
with the S&P 500 surging 28% and the tech-heavy Nasdaq
advancing 35% as of Monday. The Stoxx Europe 600 climbed 23%, set
for its best year since 2009 and hovering near its all-time
record.
Part of what made 2019 remarkable for investors was that gains
were strong across stocks, bonds and key commodities, such as oil
and gold. Vanguard's Total Bond Market ETF, for instance, which
owns a broad collection of government and corporate bonds, returned
8.9% for investors.
Gold climbed 0.5% to $1525.60 per ounce, bringing its yearly
gains to 19.2%, its best year since 2010.
Crude oil moved lower, with Brent slipping 1.1% and WTI down
1.2%. Still, oil looked set to finish the year up by more than a
third, with WTI selling at $60.94 per barrel.
"There's very limited liquidity today, that's probably just some
[algorithmic] activity and portfolio players closing their books,"
said Frank Monkam, a crude oil trader at Gunvor Group.
In currency markets, the ICE U.S. dollar index, a measure of the
dollar against a basket of currencies, fell for the sixth straight
day, according to FactSet. The dollar weakened against the Chinese
currency 0.4%, with one dollar buying 6.959 yuan. For the year, the
dollar index finished almost exactly where it started, rising just
0.5%.
What we are seeing is "broad based dollar weakness as we head
into next year," said Lee Hardman, a currency economist at MUFG.
"Markets are becoming more sensitive to the Fed's action to boost
dollar liquidity and the rapid expansion of their balance sheet.
That's having this negative impact on the dollar right now."
The U.S. Federal Reserve's balance sheet hit $4.17 trillion last
week from $3.8 trillion in September, after it flooded money
markets with hundreds of billions of dollars in cash to reduce
volatility in repo markets.
In Asia, the Shanghai Composite Index closed up 0.3% after China
released its official manufacturing purchasing index figures, which
showed an expansion of activity for the second straight month.
The Shanghai Composite finished the year up 22.3%. Among the
global market laggards was Hong Kong, whose economy stuttered after
months of clashes between antigovernment demonstrations and police.
The benchmark Hang Seng Index fell 0.5% Tuesday and finished the
year up just 9%.
Later today, investors will be watching the release of the U.S.
Conference Board's consumer confidence gauge for December. This is
expected to provide insight into holiday season shopping, an
important driver of retail sales.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
(END) Dow Jones Newswires
December 31, 2019 07:59 ET (12:59 GMT)
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