· Wall Street’s major indexes inched higher on Tuesday, extending their record-setting rally, as strong housing and manufacturing data bolstered investors’ confidence in the U.S. economy.
The Dow Jones Industrial Average .DJI rose 31.27 points, or 0.11%, to 28,267.16, the S&P 500 .SPX gained 1.07 points, or 0.03%, to 3,192.52 and the Nasdaq Composite .IXIC added 9.13 points, or 0.1%, to 8,823.36.
The benchmark S&P 500 .SPX hit a record high for a fourth straight session, building on its 27% gain this year, which has been driven by progress toward a U.S.-China trade agreement, a dovish Federal Reserve and upbeat economic indicators.
U.S. housing starts increased more than expected in November, and building permits rose that month to the highest level since May 2007. Data from the Federal Reserve also showed manufacturing output picked up more than expected in November, as the end of a strike at General Motors Co (GM.N) boosted automobile production.
· European stocks traded lower Tuesday as caution returned following a worldwide rally on the back of a “phase one” U.S.-China trade deal.
The pan-European Stoxx 600 slipped 0.73% by the close of play, with household goods shedding 2.7% to lead losses as most sectors and major bourses entered negative territory. Oil and gas and utilities stocks bucked the trend to climb 0.61% and 0.53% respectively.
· Markets in Asia were tepid in early trade on Wednesday, as risks of a no-deal Brexit ramped up again overnight.
In Japan, the Nikkei 225 was 0.12% lower, while the Topix slumped 0.19%. South Korea’s Kospi bucked the trend, edging up 0.14%.
Japan’s exports fell 7.9% in November from a year earlier, declining for the 12th straight month, according to data from the country’s Ministry of Finance on Wednesday. However it still beat a forecast of a 8.6% drop in a Reuters poll, and was better than the 9.2% decline in October.
Imports, however, did worse than expected — falling 15.7% as compared to an estimated 12.7%.
Australia’s S&P/ASX 200 was flat in early trade, with banks and major miners declining.
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat.
Meanwhile, Brexit risks flared amid reports on Tuesday that U.K. Prime Minister Boris Johnson will amend the Brexit bill, explicitly ruling out any extension to the transition period beyond December 2020. The U.K. is due to leave the EU by Jan. 31.
That would leave little time to reach a trade deal with the European Union, raising the risks of a no-deal Brexit.
Reference: CNBC, Reuters
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