A post-Christmas day full of surprises in the US markets as stocks gained incredible, historic amounts of points in Wednesday’s closing session. Dow Jones Industrial Average soured over 1,000 for the first time ever in one single session after weeks of a brutal routing by sellers. The bounce from the bear territory also saw S&P 500 rising by 5 percent while the Nasdaq 100 made its best day in a decade.
The rally in America quickly found its way to Asia. Japan’s Nikkei, for example, managed to climb out of the bear market it had entered earlier this week rising near 4 percent.
The US Dollar was uplifted thanks to investors taking the advantage of the opportunity that presented itself.
But a continued partial US government shutdown and fears surrounding the global economic outlook as well as the currently-paused Sino-US trade war are still here and ready to swing the market mood back to red.
In fact, as of early Thursday hours in the US, negotiations between the White House and the Senate Democrats remained at a standstill with no side ready to compromise. President Donald Trump resumed attacking Democrats for the impasse.
Bureau of Economic Analysis and Census Bureau of the US Department of Commerce are not releasing economic data during the ongoing federal government shutdown, the department said in a notice on its website. Thus, the releases of new home sales, US building permits data scheduled for Thursday and a report on advance economic indicators for Friday have been postponed. The Labor Department has made no changes in its calendar and will continue to release data.
Oil prices could not hold earnings made earlier due to the jump earlier in US markets because of the continued glut in the supply despite OPEC’s resolution to change the course in the new year.
Trump meanwhile, was considering an executive order to declare a national emergency that would bar American companies from using telecommunications equipment made by China’s Huawei and ZTE on national security reasons, Reuters reported on Thursday.
The step if taken can derail the truce President Xi of China reached with Trump at the G20 meeting only weeks ago.