Australian shares have smashed past the 7000 level for the first time as investor confidence continued to surge after the signing of a long-awaited trade deal between the USA and China. -China trade deal in Washington.
After trading at new records, stocks had a rough afternoon. giving back most of the day's gains. The S&P 500 was up 0.30% at 3,293.04 and the Nasdaq Composite was up 33.98 points at 9,285.31. The Dow added 90 points, or 0.3%, to 29,030. Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index also posted a record closing high, climbing 0.5 per cent to 11,737.86.
The Russell 2000 index of smaller company stocks picked up 6.66 points, or 0.4%, to 1,682.40. Bond prices rose. The yield on the 10-year Treasury note fell to 1.79%.
While limited in its scope, investors have welcomed the U.S.
However, concern over whether the deal will stick overshadowed that optimism after U.S. Treasury Secretary Steven Mnuchin said the deal will not reduce any punitive tariffs imposed on imports from China until after the two sides reach a further agreement.
The gold price rose also after the trade deal was signed between the world's two biggest economies as details of the agreement failed to assuage investor concerns about trade differences. Earnings have been flat to down for the last three quarters, and if the fourth quarter meets expectations, it should be around the same.More news: Federer, Nadal kick in $170000 for Australian bushfire relief
Investors were also paying close attention to the first week of USA corporate earnings season. The Nasdaq KBW Bank index fell 1.7%.
"Given the amount of speculation by the markets and commentary by officials ahead of Wednesday's signing, it is unsurprising markets have not rallied too strongly upon final signing", said Hannah Anderson, a strategist at JPMorgan Asset Management.
Investors are awaiting earnings from big banks JPMorgan Chase & Co JPM.N , Citigroup Inc C.N and Wells Fargo & Co WFC.N , which kick off the fourth-quarter reporting season from Tuesday. Anthem shares gained 1.6%, Cigna shares added 1.5%. Edison International climbed 2.5% and PepsiCo rose 1.7%.
Wall Street looked set for a quiet start, with the future contracts for the Dow and the S&P 500 both down 0.1%.
Utilities and consumer staples sector stocks also notched gains.
Financial stocks declined as the latest round of big bank earnings largely disappointed. Bank of America declined 1.8% after reporting weaker earnings in late 2019 due to the rapid fall in interest rates.More news: Jennifer Lopez wants a simpler life
Oil prices slid 29 cents to $57.94 US a barrel. Valero Energy dropped 3.3%.
Wall Street finished Wednesday's session higher, following the signing of the long-awaited U.S. Hovnanian Enterprises grew 6.4%. The company said weak sales of electronics, toys and home goods crimped sales growth to just 1.4% in November and December.
Brent crude oil, the worldwide standard, gained 1 cent to $64.50 per barrel. Brent crude oil, the worldwide standard, fell 49 cents to close at $64 a barrel.
Commonwealth Bank of Australia advanced about 1 per cent to its highest close since August 3, 2017, and was the best performer among the "big four" lenders.
Toymakers Mattel Inc and Hasbro Inc fell 4.6% and 2.1%, respectively, while electronics seller Best Buy dropped 1.7%.More news: European Tour's new slow play regulations come in to effect this week