According to the news report by Bloomberg Quint, US stocks rose after corporate earnings pushed up investors’ confidence in the economy and President Donald Trump announced that the government would re-open provisionally.
The Dow Jones Industrial Average and the Nasdaq Composite Index close the week in the green after erasing the declines they had experienced at the beginning of the week. The S&P 500 Index closed the week slightly lower.
Emerging markets ended the week on the back of speculation that a delegation from China was to arrive in Washington to carry on the trade negotiations.
The news that the Federal Reserve was contemplating putting an end to its program of cutting down on its balance sheet earlier than expected added to market optimism, since this would ease the pressure on financial conditions in the markets.
Aviva Investors’ portfolio manager Tim Alt said that there was no a chance that the risk-taking channels could once again open up.
President Trump’s about-face was a surprise, especially after he spend the last 5 weeks insisting that he would not allow the government to start functioning again till he got the funding he needed for his proposed border wall. However, after his approval ratings plunged, air travel was impacted and the processing of tax refunds were under threat, Trump backed down.
Amundi Pioneer Asset Management’s managing director and portfolio manager John Carey stated that while there was still political uncertainty, the crises had been either averted or least postponed. He said it was a question of easing the pressure in the short term.
In international markets, Venezuela’s 2027 Dollar bonds which have already defaulted shot up by 30.9% of its face value as the European Union looked to be leaning towards insisting on an immediate election in the country.
The American benchmark for crude oil, West Texas Intermediate futures closed the week higher after traders assessed the Venezuelan crisis and the effect it could have on production in the US.
The British pound closed the week the highest it has been since September 2017. The currency strengthened on the hope that a no-deal Brexit was going to be avoided.
In stocks, the S&P 500 Index went up by 0.9% to close at 2664.76 points. While the index gained on Friday, for the week it was down by 0.2%.
The Dow Jones Industrial Average went up by 0.8% on Friday. For the week, the index is up by 0.1%, clocking gains for the fifth week in a row.
The Nasdaq Composite Index went up 1.3% on Friday. For the week, the index went up by 0.1%.
The STOXX Europe 600 Index went up by 0.6%, the UK FTSE 100 dropped by 0.1%, the German DAX Index went up by 1.4% and the MSCI Emerging Markets Index rose 1.4%.
In forex, the Bloomberg Dollar Spot Index fell by 0.7%, which is its biggest drop in the last two weeks. The Euro went up by 1% to trade at $1.1417. The British Pound gained 1.1% to trade at $1.3214 and the Japanese Yen gained 0.1% to trade at ¥109.49 to the dollar.
In bonds, the 10-year Treasuries yield in the US went up by 3 basis point to close the week at 2.75%. The 10-year yield in Germany gained 1 basis point to close the week at 0.19%, which is its first increase in the last 5 days. The 10-year yield in the UK went up by 4 basis points to close the week at 1.31%.
In commodities, the West Texas Intermediate went up by 0.8% to trade at $53.56 per barrel. The price of gold went up by 1.5% to trade at $1,300 per ounce.