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U.S. Stocks Rebound to Post Best Week since 2013

U.S. Stocks Rebound to Post Best Week since 2013
U.S. markets will be closed today and Chinese markets as well as other major Asian markets are closed for the Lunar New Year.
Feb 19, 2018 By Simon Herrmann Tags: Stocks for Breakfast

U.S. stocks held onto gains to cap their best week in five years while Treasuries climbed and the dollar broke a five-day losing streak.

The recovery in American equities has come quickly after the first correction in U.S. stocks in two years, and the S&P 500 is now down less than 5 percent from an all-time high reached Jan. 26. The S&P 500 was slightly higher at the close on Friday after a late-day slump as investors assessed the implications of new indictments related to Russian meddling in the 2016 presidential election. The gauge ended 4.3 percent higher for the week ahead of a holiday weekend.

The Stoxx Europe 600 Index increased 1.1 percent as EUropean stocks followed New York's lead.

U.S. markets will be closed today and Chinese markets as well as other major Asian markets are closed for the Lunar New Year.

Oil Futures Rise

Oil posted its first weekly increase since last month as rebounding equity markets eased concern about economic growth and a weakening dollar boosted the allure of commodities priced in the U.S. currency.

Futures in New York rose 0.6 percent on Friday and gained 4.2 percent this week. The greenback touched a three-year low earlier in the day before edging higher, though the increase wasn’t enough to wipe out the previous four days’ losses. Equity markets recovering from recent routs boosted confidence in bullish energy demand forecasts.

Source: Bloomberg, Iress, Reuters, SMH, wise-owl

ASX Gains 66 Points for the Week, Futures Slightly Lower

ASX futures in Sydney trade 7 points lower after U.S. stocks traded mixed on Friday and remain closed on Monday. While many Asian markets including China and Hong Kong will be closed today for the Lunar New Year, we expect a quiet session apart from the ongoing flow of earnings announcements. We have the RBA minutes tomorrow as well as data on wage and construction work on Wednesday.

The S&P/ASX 200 added 66 points or 1.1 per cent for the week to close just above 5,900 points. Australian stocks - just like much of the rest of the world - did not rebound as strongly as New York.

Reporting season remains in full swing with about half of all companies still due to release their half year results in the coming weeks.

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Simon Herrmann Author: Simon Herrmann Feb 19, 2018

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

Wall Street Rebounds Strongly on Friday to Post Weekly Gain

U.S. stocks rallied on Friday, erasing a weekly loss as investors decided to 'buy the dip' whilst weighing up the strength of the economy, valuations and interest rates.

Author: Simon Herrmann Feb 26, 2018

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