Gold Silver Reports – Asian Stocks Mixed; Dollar Drops to Three-Year Low – The rally in Asian stocks stalled Wednesday even after U.S. stocks rose for a third day. The yen strengthened as the dollar resumed its decline.
The MSCI Asia Pacific Index was little changed, with Australian and Korean shares ticking higher as Japanese shares slipped. Earlier, the S&P 500 Index closed at a record high as the strong start to earnings continued, with 82 percent firms that have reported topping estimates. The 10-year Treasury yield steadied after a second session of declines, while the Bloomberg Dollar Spot Index dropped to a three-year low. The yen strengthened as investors digested a rise in exports in December.
Investors have focused on a positive start to earnings season, mostly brushing off fears of protectionism after U.S. President Donald Trump slapped tariffs on imported solar panels and washing machines. Traders will be turning their attention toward Thursday’s European Central Bank meeting, as well as keeping an eye on Davos, Switzerland, where the world’s business and political elites have gathered for an annual conference.
“The earnings season is going phenomenally well, and the government shutdown on Friday was reversed yesterday, so we’ve got the government behind us for the next couple of weeks,” Phil Orlando, chief equity market strategist at Federated Investors, said by phone. “But the reason the stock market is up is very simply that investors are reflecting on the fact that earnings are much better than expected.”
Elsewhere, West Texas oil steadied near the highest since December 2014 as signs mount that dwindling U.S. stockpiles are contributing to a tightening global market. Bitcoin was trading slightly below $11,000.
- Earnings season is in full swing: Novartis, General Electric, Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks and Hyundai Motor all come later in the week.
- Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos for the annual World Economic Forum.
- The European Central Bank announces its rate decision on Thursday
- The U.K. House of Lords is considering Prime Minister Theresa May’s Brexit bill this week.
These are the main moves in markets:
Stocks
- The MSCI Asia Pacific Index declined 0.1 percent as of 9:16 a.m. Tokyo time.
- Japan’s Topix index sank 0.3 percent.
- Kospi index climbed 0.1 percent, touching the highest in two months.
- Australia’s S&P/ASX 200 Index advanced 0.1 percent to the highest in more than a week.
- Futures on the S&P 500 Index were little changed after the underlying gauge closed at the highest on record Tuesday.
