Pakistan stocks retreat on global tensions
After a phenomenal rally in the preceding session, the KSE-100 Index finished the last trading day of the week on a negative note amid global equity sell off following uncertainty over outcome of US Iran conflict.
The Index shot up from the moment trading began; however, the momentum could not be sustained as cautious trading dragged the index lower. Investor concerns emanated over political noise and high inflation data. Moreover, the constant foreign outflow in the past few days also dented sentiments. On the international front, oil chain reacted to the jump in global oil prices which went up on the news of US attack on Iranian military commander.
At close, the benchmark KSE 100-share Index recorded a decrease of 157.46 points, or 0.37percent, to settle at 42,323.30. Overall, trading volumes fell to 322.9 million shares compared with Thursday’s tally of 412.4 million. The value of shares traded during the day more than doubled to Rs14.7 billion. Shares of 360 companies were traded. At the end of the day, 127 stocks closed higher, 218 declined and 15 remained unchanged. TRG Pakistan was the volume leader with 23.8 million shares, gaining Rs1.11 to close at Rs28.16.
US stocks fall from record highs on me tension
all Street fell from record highs on Friday after a US air strike in Iraq ratcheted up tensions in the Middle East and a bigger-than-expected contraction in the US manufacturing sector raised concerns of slowing economic growth.
Demand for safe-haven assets soared as Iran vowed revenge for the killing of Qassem Soleimani, head of its elite Quds Force, in an air strike authorized by US President Donald Trump.
In a further blow to U.S. market sentiment, data from the Institute for Supply Management showed that US factory activity contracted in December by the most in more than a decade.
S&P 500 bank stocks dropped 1.4% as the news sent benchmark U.S. bond yields to their lowest since Dec. 12.
Shares of airlines also tumbled as oil prices jumped about 3%. American Airlines Group Inc shares dropped 4.4%, while shares of United Airlines Holdings Inc fell 2.0%.
Among the S&P 500’s 11 major sectors, only real estate , utilities and consumer staples – all considered defensive plays – were trading higher.
The Dow Jones Industrial Average fell 176.25 points, or 0.61%, to 28,692.55, the S&P 500 lost 15.37 points, or 0.47%, to 3,242.48 and the Nasdaq Composite dropped 47.26 points, or 0.52%, to 9,044.93.
Among advancers, Tesla Inc shares hit a record high and were last up 3.5% after the automaker beat estimates for vehicle deliveries in the fourth quarter.
France stocks higher at close of trade; cac 40 up 1.06pc
France stocks were higher after the close on Thursday, as gains in the Foods & Drugs, Gas & Water and General Financial sectors led shares higher.
At the close in Paris, the CAC 40 rose 1.06 percent to hit a new 5-year high, while the SBF 120 index gained 1.07 percent. Rising stocks outnumbered declining ones on the Paris Stock Exchange by 419 to 158 and 86 ended unchanged. Shares in STMicroelectronics rose to 5-year highs; up 3.30 percent or 0.790 to 24.760. Shares in Kering SA rose to all time highs; rising 2.19 percent or 12.80 to 598.00. The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was down 10.22 percent to 12.41. Gold Futures for February delivery was up 0.30 percent or 4.55 to $1527.65 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February fell 0.29 percent or 0.18 to hit $60.88 a barrel, while the March Brent oil contract fell 0.05 percent or 0.03 to trade at $65.97 a barrel. EUR/USD was down 0.36 percent to 1.1170, while EUR/GBP rose 0.56 percent to 0.8504. The US Dollar Index Futures was up 0.48 percent at 96.515.
DAX index slumps after US air strike
DAX index slumps in the early European session as the tensions between Iran and USA increase after an airstrike in Baghdad killed General Qassem Soleimani, head of Iran’s Quds Force.
Traders attention has turned to the Middle East tensions, but in Germany the Germany Unemployment Change came in at 8,000 topping expectations of 2,000 in December. The Unemployment Rate in the country came in at 5 percent in December in line with forecasts. Investors dump risky assets across the globe today as the risk-on mood fades away.
On the technical analysis side the Dax index as of writing breaks below the ascending trendline which drives the price higher since early 2019. On the downside, initial support for Dax 30 index stands at 13,170 today’s low. Next target and strong support for the index is the 50-day moving average at 13,140. If the index breaks below, would open the way for a move down to 12,884 the low from December 10th. On the upside, first resistance for Dax is at 13,282.74 today’s high. Next resistance level that the bulls will face stands at 13,385 the top from December 27th which guards the 2019 high at 13,425.85.
Taiwan stock market ends two-day slide
The Taiwan stock market on Thursday ended the two-day slide in which it had fallen almost 100 points or 0.9 percent. The Taiwan Stock Market now rests just above the 12,100-point plateau and it’s expected to see additional support on Friday. The global forecast for the Asian markets is upbeat on continued optimism over the reportedly forthcoming trade agreement between the United States and China.
The TSE finished modestly higher on Thursday following gains from the technology stocks and cement companies, while the financials were mixed. For the day, the index advanced 103.34 points or 0.86 percent to finish at 12,100.48 after trading between 12,026.23 and 12,110.74.
India Sensex falls 150 points, Nifty drops below 12,250
Domestic stock markets started Friday’s session on a negative note, moving away from all-time highs. The S&P BSE Sensex index fell as much as 151.73 points to hit 41,474.91 in early trade and the broader NSE Nifty benchmark moved to as low as 12,228.00, down 54.2 points from its record close of 12,282.20 registered the previous day. Losses in financial, automobile and metal shares weighed on the markets however gains in information technology stocks limited the downside.