Morning Market Wrap: Trade commentary drives US markets to new highs

18 Nov 2019
Movements seen by US markets on Friday appeared to reflect a boost in confidence by investors…


All major US markets closed at record highs on Friday as renewed confidence over the likelihood of a trade deal being signed between the US and China supported markets and drove the S&P500 to record its sixth-consecutive week of gains. The new highs in the stock market have been accompanied by a steady rotation into cyclical and value stocks, investments that typically outperform during periods of accelerating economic growth.

The renewed optimism and market advance came as Commerce Secretary Wilbur Ross said in an interview on the Fox Business Network that “while progress has been made, some issues still remain”, indicating that President Trump hasn’t agreed to remove any tariffs and is looking for the best possible deal for America.


The ASX200 climbed 58 points higher to close at 6,793 and experienced broad gains by all sectors with Healthcare, Information Technology, Materials and Consumer Discretionary gaining more than 1%.

Tech stocks lead the gains for the day as Afterpay (APT) climbed 4.24% to $32.91 and WiseTech (WTC) climbed 1.89% $29.17.

BHP group (BHP) had the most impact on overall markets as it responded well to improved iron ore prices and climbed 1.28%. Fortescue Metals (FMG) and Rio Tinto (RIO) also advanced 1.26 and 0.77 percent respectively as iron ore prices gained a boost from a Reuters report that indicated that China is committing to new fiscal measures that would assist with financing infrastructure projects.



Commodities and Currencies

Iron ore advanced 1.9% to $US85.05 a tonne on optimism that China will continue to support growth and demand for steel with a new round of fiscal stimulus. Gold pulled back 0.2% to $1,468 an ounce as investors turned their attention to more risky assets and away from defensive positioning.


This article was written by Thomas Brunton – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3633.

Rivkin does not ever provide financial advice. Please consider your own circumstances before purchasing any of our products or acting on our general advice, for any Rivkin product or recommendation.



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