The conclusion of the US-China Phase I deal and today’s steady US retail consumption data support US stocks and they again set a new record. Stock returns are also rising.
All three major broad US indices have reached new record levels, with rally driven by financial and technology stocks. Banks and chipmakers are also rising significantly today, following better results from Taiwan Semiconductor Manufacturing and Morgan Stanley. Government securities have fallen in price after data in the retail sector and the US dollar is weakening.
On the day that Trump’s impeachment process was selected, the Senate approved his new trade deal with Mexico and Canada.
I expect the appetite for risk to persist until the end of the US session, keeping sentiment positive throughout Asian trade.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov