Stocks on major world markets gave back some of the week's gains on Friday, while global bond yields rose for a fifth day, supporting the U.S. dollar but pressuring commodities and emerging markets.Investors are anticipating that U.S. President-elect Trump's policies will include lower tax rates and more infrastructure spending to grow the economy, but at the expense of a wider fiscal deficit and inflation.
The Dow Jones industrial average .DJI ended at a record closing high of 18,847.66. The S&P 500 index .SPX slipped 0.14 percent to 2,164.45, weighed down by weakness in energy stocks as oil prices fell, but the benchmark index was up 3.8 pct for the week, as was the Nasdaq Composite .IXIC, its best week since 2011.
Since the election on Tuesday, equity sectors that have benefited include banks and pharmaceuticals which may see less regulation under a Trump administration, while technology stocks are seen threatened by anti-trust policies and possible disruption of global supply chains posed by more protectionist trade policies.
The S&P financials stock index .SPSY closed up 0.4 percent on Friday and up 11.3 percent for the week, the best weekly performance since May 2009.The S&P healthcare stock index .SPXHC fell 1.5 percent on Friday but ended the week up 5.8 percent, its best week gain in over two years.
The Nasdaq biotechnology index .NBI fell 0.64 percent on Friday but ended the week up 10 percent, its best week since 2000."Wall Street is going to be watching a lot of (Trump's) appointments and policy announcements to see whether it validates the more optimistic tone we've seen in the markets in the past few days," said Alan Gayle, senior investment strategist and director of asset allocation at RidgeWorth Investments in Atlanta, Georgia.European shares fell on Friday also as commodities stocks fell with oil prices and stocks exposed to emerging markets slumped on concern that U.S. President-elect Donald Trump will introduce protectionist trade policies.
The STOXX Europe 600 index closed 0.4 percent lower but the pan-European index gained 2.6 percent this week, the best weekly performance since mid-July"After panic buying, a more rational and selective phase has started," said Giuseppe Sersale, fund manager at Anthilia Capital in Milan. "The political and economic obstacles to his plans must not be underestimated".
The mining sector index .SXPP fell 2.0 percent as investors took profits from a rally of more than 10 percent in basic resources stocks this week.The European oil and gas index .SXEP closed 2.2 percent weaker, mirroring steep losses in crude oil prices after OPEC said October output reached another record, casting doubt on whether it can limit persisting oversupply.A sell-off in emerging markets hurt companies such as Standard Chartered (STAN.L) and South African paper and packing maker Mondi (MNDI.L), which dropped 6.3 percent and 4.7 percent respectively.
The MSCI emerging markets index .MSCIEF fell 2.9 percent.MSCI's all-country world index .MIWD00000PUS lost 0.6 percent but saw its best week in seven.
GLOBAL BOND YIELDS RISE FOR FIFTH DAY
Global bond markets sold off further Friday though the U.S. Treasury market was closed for the U.S. Veterans Day federal holiday. U.S. Treasury futures fell to ten-month lows on Friday.In Europe, Italian 10-year yields IT10YT=RR climbed over 2.0 percent for the first time since September 2015 while German 10-year yields rose for a fifth day.Global bond markets have seen the biggest loss of value this week since June 2013 when the Federal Reserve first discussed "tapering" its bond buying program.
The Federal Reserve is monitoring an increase in long-term U.S. government borrowing costs and will adjust policy accordingly if necessary, Fed Vice Chair Stanley Fischer said on Friday.
In his first remarks since the election of Donald Trump as U.S. president, Fischer added that economic growth prospects appear strong enough for the Federal Reserve to proceed with a gradual increase in interest rates.
Read More - https://www.goldcruderesearch.com/
The Dow Jones industrial average .DJI ended at a record closing high of 18,847.66. The S&P 500 index .SPX slipped 0.14 percent to 2,164.45, weighed down by weakness in energy stocks as oil prices fell, but the benchmark index was up 3.8 pct for the week, as was the Nasdaq Composite .IXIC, its best week since 2011.
Since the election on Tuesday, equity sectors that have benefited include banks and pharmaceuticals which may see less regulation under a Trump administration, while technology stocks are seen threatened by anti-trust policies and possible disruption of global supply chains posed by more protectionist trade policies.
The S&P financials stock index .SPSY closed up 0.4 percent on Friday and up 11.3 percent for the week, the best weekly performance since May 2009.The S&P healthcare stock index .SPXHC fell 1.5 percent on Friday but ended the week up 5.8 percent, its best week gain in over two years.
The Nasdaq biotechnology index .NBI fell 0.64 percent on Friday but ended the week up 10 percent, its best week since 2000."Wall Street is going to be watching a lot of (Trump's) appointments and policy announcements to see whether it validates the more optimistic tone we've seen in the markets in the past few days," said Alan Gayle, senior investment strategist and director of asset allocation at RidgeWorth Investments in Atlanta, Georgia.European shares fell on Friday also as commodities stocks fell with oil prices and stocks exposed to emerging markets slumped on concern that U.S. President-elect Donald Trump will introduce protectionist trade policies.
The STOXX Europe 600 index closed 0.4 percent lower but the pan-European index gained 2.6 percent this week, the best weekly performance since mid-July"After panic buying, a more rational and selective phase has started," said Giuseppe Sersale, fund manager at Anthilia Capital in Milan. "The political and economic obstacles to his plans must not be underestimated".
The mining sector index .SXPP fell 2.0 percent as investors took profits from a rally of more than 10 percent in basic resources stocks this week.The European oil and gas index .SXEP closed 2.2 percent weaker, mirroring steep losses in crude oil prices after OPEC said October output reached another record, casting doubt on whether it can limit persisting oversupply.A sell-off in emerging markets hurt companies such as Standard Chartered (STAN.L) and South African paper and packing maker Mondi (MNDI.L), which dropped 6.3 percent and 4.7 percent respectively.
The MSCI emerging markets index .MSCIEF fell 2.9 percent.MSCI's all-country world index .MIWD00000PUS lost 0.6 percent but saw its best week in seven.
GLOBAL BOND YIELDS RISE FOR FIFTH DAY
Global bond markets sold off further Friday though the U.S. Treasury market was closed for the U.S. Veterans Day federal holiday. U.S. Treasury futures fell to ten-month lows on Friday.In Europe, Italian 10-year yields IT10YT=RR climbed over 2.0 percent for the first time since September 2015 while German 10-year yields rose for a fifth day.Global bond markets have seen the biggest loss of value this week since June 2013 when the Federal Reserve first discussed "tapering" its bond buying program.
The Federal Reserve is monitoring an increase in long-term U.S. government borrowing costs and will adjust policy accordingly if necessary, Fed Vice Chair Stanley Fischer said on Friday.
In his first remarks since the election of Donald Trump as U.S. president, Fischer added that economic growth prospects appear strong enough for the Federal Reserve to proceed with a gradual increase in interest rates.
Read More - https://www.goldcruderesearch.com/
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