Futures point to lower opening of US stock market - 21.1.2020

Dollar strengthening intact

US stock market will reopen today after Martin Luther King Day holiday. On Friday all three main indexes notched new records. The dollar strengthening halted : the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, inched down less than 0.1% to 97.58 yesterday but is higher currently. Fourth quarter earnings season continues with 70.5% of the 9% of SP 500 companies that have reported earnings so far have beaten expectations, compared to the beat rate of 65% for a typical quarter, according to data from Refinitiv. Futures on stock indexes point to lower openings today.

DAX 30 gained while European indexes retreated

European stocks pulled back on Monday. The EUR/USD turned higher while GBP/USD decline persisted yesterday with both pairs higher currently. The Stoxx Europe 600 index lost 0.1% led by household goods shares. The DAX 30 however rose 0.2% to 13548.94. France’s CAC 40 fell 0.4% while UK’s FTSE 100 slid 0.3% to 7651.44.

Hang Seng leads Asian indexes retreat

Asian stock indices are mostly lower today. Nikkei retreated 0.9% to 23864.56 as yen reversed its slide against the dollar after Bank of Japan kept its policy unchanged, stating it expected the $120 billion government stimulus program, approved last month to help recovery from a typhoon in October, would boost the economy to grow slightly faster than previously projected. Markets in China are down: the Shanghai Composite Index is down 1.4% and Hong Kong’s Hang Seng Index is 2.7% lower after Moody’s downgraded the territory’s credit rating. Australia’s All Ordinaries Index lost 0.2% despite accelerated Australian dollar slide against the greenback.

Saudi Aramco shares mirror Brent move

Brent futures prices are pulling back today. Prices ended higher yesterday: March Brent crude closed 1% higher at $65.50 a barrel on Monday. Saudi Aramco ‘s shares continue trading on the country’s Tadawul exchange. Shares closed up 0.7% at 34.6 riyals on Monday, as Saudi Arabia's stock index gained 0.2%.

Gold down

Spot gold prices are edging lower today after inching toward seven year high at $1610.90 hit last week. February gold ended at 1559.96 an ounce on Monday.