US stocks rise on higher ISM services reading
US stocks climbed higher on Monday as positive data showing services sector continued accelerated expansion offset concerns about euro-zone political uncertainty after Italians rejected the proposed constitutional reform in a referendum on Sunday. 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 0.54% lower at 101.151. The Dow Jones industrial closed at all time high 19216.24 gaining 0.2% led by Visa and Goldman Sachs shares. The S&P 500 rose 0.6% settling at 2204.71 with financial and technology stocks leading the market higher. The Nasdaq index added 1% to 5308.89.
Italian banks hurt the most after Italian referendum
European stocks closed higher on Monday paring earlier losses as markets opened lower after Prime Minister Matteo Renzi announced his resignation following the rejection of a constitutional reform in the Sunday referendum. The euro rose against the dollar while the British Pound ended little changed having both opened with a gap lower on political uncertainty and the possibility of another euro-zone crisis. The Stoxx Europe 600 index added 0.6%. The DAX 30 rose 1.6% to close at 10684.33, France’s CAC 40 gained 1% and UK’s FTSE 100 added 0.2% to 6746.83.
Asian stocks edge higher on limited fallout from Italian referendum
Asian stocks are advancing today as investors confidence was boosted by a limited fallout after Italian Prime Minister Matteo Renzi announced his resignation following Sunday’s referendum. Nikkei ended 0.27% higher at 18360.54 today as yen edged lower against the dollar. The Shanghai Composite Index is 0.1% lower while Hong Kong’s Hang Seng index is 0.6% higher after Monday’s launch of a trading link between the Hong Kong and Shenzhen exchanges, which will allow Chinese investors to buy into some small cap stocks. Australia’s All Ordinaries Index is 0.5% higher despite weaker Australian dollar against the dollar as Australia’s central bank kept its cash rate at a record low 1.5% and gave a cautious outlook for a mixed economy.
Oil prices fall on doubts OPEC will agree to output cuts
Oil futures prices are rising today after climbing to 17 month high on Monday following the rally sparked by the Organization of the Petroleum Exporting Countries dal to curb crude output last week. Traders are focusing on coming OPEC meeting on December 10 in Vienna where non-OPEC producers are expected to agree to add an output cut of 600000 barrels per day. February Brent crude rose 0.9% to $54.94 a barrel on London’s ICE Futures exchange on Monday.