{"id":115359,"date":"2017-10-25T07:18:16","date_gmt":"2017-10-25T11:18:16","guid":{"rendered":"http:\/\/countingpips.com\/?p=115359"},"modified":"2018-06-01T15:55:26","modified_gmt":"2018-06-01T15:55:26","slug":"financial-stocks-lead-us-market-higher","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/financial-stocks-lead-us-market-higher\/","title":{"rendered":"Financial stocks lead US market higher"},"content":{"rendered":"
October 25, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Dow closes at new record high<\/h2>\n<\/div>\n<\/div>\n

US stocks<\/b>\u00a0advanced on Tuesday as better than expected corporate reports boosted investor confidence. The dollar strengthening continued: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, edged up 0.01% to 93.929. The\u00a0S&P 500\u00a0<\/em>added 0.2% to 2569.13 with gains in financial and materials shares offsetting losses in health care stocks.\u00a0Dow Jones\u00a0<\/em>industrial average rose 0.7% closing at record high 23441.76 led by 4.9% and 5.9% jump in Caterpillar and 3M shares respectively on better than expected earnings and profit outlook. The\u00a0Nasdaq\u00a0<\/a>composite index added 0.2% to 6598.43.<\/p>\n

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Positive earnings reports and anticipated tax cut stimulus are the main drivers of the recent market rally which has elevated stock valuations to historical highs. Treasury yields rose as Trump polled the Republicans on whether they would prefer John Taylor or current Fed Governor Jerome Powell to head the Federal Reserve, and more senators preferred Taylor. Taylor, a proponent of rules in guiding Fed monetary policy, is seen as someone who may put the central bank on a faster path of interest rate increases. Positive economic data also support the view of improving economic performance: both Markit Manufacturing and Services PMIs came in better than expected with composite purchasing managers\u2019 index, a gauge of economic activity, rose to 54.5 in October, a nine-month high.<\/p>\n<\/div>\n<\/div>\n

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European stocks slip<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>closed lower on Tuesday although country stock indexes ended higher. The\u00a0euro\u00a0<\/em>recovered some of the previous day losses against the dollar while\u00a0British Pound\u00a0<\/em>accelerated its decline. The Stoxx Europe 600 lost 0.4% led by health care stocks. German\u00a0DAX 30\u00a0<\/a>added 0.1% closing at 13013.19 helped by 6% jump in Commerzbank shares. France\u2019s\u00a0CAC 40<\/em>\u00a0closed 0.2% higher and UK\u2019s\u00a0FTSE 100\u00a0<\/em>added less than 0.1% to 7526.54. Indices opened 0.1%-0.2% lower today.<\/p>\n

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Bank stocks led the gains. Spanish stocks also rose led by Banco Sabadell, Caixabank and Santander shares after Caixa reported the flow of deposits out of the bank had slowed since it moved its headquarters out of Catalonia. In economic news the expansion in euro-zone manufacturing sector accelerated as produce prices rose at the fastest rate since June 2011 while the services sector growth slowed down.<\/p>\n<\/div>\n<\/div>\n

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Asian markets rise as China\u2019s party congress ends<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly higher.\u00a0Nikkei\u00a0<\/em>lost 0.5% to 21707.62 snapping 16-day winning streak as yen inched higher against the dollar. Chinese stocks are higher after President Xi Jinping introduced his Politburo Standing Committee: the\u00a0Shanghai Composite Index\u00a0<\/em>is 0.3% higher and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is up 0.5%. Australia\u2019s All Ordinaries Index gained 0.1% as Australian dollar fell 0.6% against the greenback after report Australian consumer prices declined to 1.8% over year in third quarter from 1.9% in second quarter.<\/p>\n

\"AU<\/p>\n

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Oil lower ahead of US crude stock report<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are lower today as traders weigh top exporter Saudi Arabia\u2019s Energy Minister Khalid al-Falih\u2019s comment Tuesday their focus remained on reducing oil stocks in industrialized countries to five-year average. Prices rose yesterday despite the American Petroleum Institute industry group report late Tuesday US crude stocks rose by 519 thousand barrels last week. December Brent crude rose 1.7% to $58.33 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Dow closes at new record high US stocks\u00a0advanced on Tuesday as better than expected corporate reports boosted investor confidence. The dollar strengthening continued: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, edged up 0.01% to 93.929. The\u00a0S&P 500\u00a0added 0.2% […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-115359","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=115359"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115359\/revisions"}],"predecessor-version":[{"id":115368,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115359\/revisions\/115368"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=115359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=115359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=115359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}