Dow posts sixth record close
US stock indices ended mixed on Monday as Dow Industrials posted sixth consecutive record close while S&P 500 and Nasdaq retreated ahead of the Federal Reserve’s two-day meeting. The dollar weakened: 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, closed 0.6% lower at 100.908. The Dow Jones industrial closed at all time high 19796.43 gaining 0.2% led by Johnson & Johnson and Wal-Mart shares. The S&P 500 dipped 0.1% settling at 2256.96 with financial and consumer discretionary stocks weighing on the market. The Nasdaq index lost 0.6% to 54124.54 with Apple down 0.6% and Facebook 1.6% lower.
European stocks fall despite jump in energy shares
European stocks closed lower on Monday as investors refrained from making big bets ahead of the US Federal Reserve’s policy meeting. The euro strengthened against the dollar continuing the recovery after Friday’s drop following the European Central Bank announcement that it would extend bond buys but scale back the amount. The Stoxx Europe 600 index lost 0.5%. The DAX 30 index slid 0.1% to close at 11190.21, France’s CAC 40 ended 0.1% lower and UK’s FTSE 100 fell 0.9% to 6890.42.
Asian stocks edge despite mixed Chinese data
Asian stocks are mixed today as investors focus on Federal Reserve policy decision. Nikkei ended 0.5% higher at 19250.52, its highest close since December 30 last year as yen dipped against the dollar. Chinese stocks are edging higher after data showed retail sales grew 10.8% in November from a year earlier, accelerating from a 10.0% increase in October while the growth in housing sales slowed to 16.2% in November from a 38.3% after stricter real estate buying controls were introduced in October. The Shanghai Composite Index is 0.08% higher and Hong Kong’s Hang Seng index is 0.06% up. Australia’s All Ordinaries Index is 0.3% lower despite weaker Australian dollar against the dollar.
Oil rally continues after major producers join OPEC output cut deal
Oil futures prices are extending gains today after hitting 17 month high on Monday following the agreement over the weekend by major oil producers including Russia to cut their output by 558000 barrels a day. 300000 barrels a day has been pledged by Russia, with the balance promised by 10 other countries. The total reduction together with the 1.2 million barrels a day agreed to by OPEC in late November represents almost 2% of the global supply. Traders are now focusing on whether producers will actually adhere to their commitments given the poor historical record of the OPEC. February Brent crude jumped 2.5% to $55.69 a barrel on London’s ICE Futures exchange on Monday.