U.S. stocks finished the day and week higher on Friday, with both the S&P 500 and the Nasdaq ending at records as optimism over corporate earnings outweighed the threat of a government shutdown. The Dow rose 53.91 points, or 0.2%, to 26,071.72, after spending much of the day in the red and is within half a percentage point of an all-time peak. The Nasdaq added 0.6%, or 40.33 points, to 7,336.38, whilst touching intraday highs during the session.
British stocks also turned higher into Friday's finish, with the swing directed by a drop in the pound after British retail sales fell sharply, while a ratings upgrade left budget carrier EasyJet PLC with its best session in two months. The FTSE 100 rose 0.4% to end at 7,730.79. Advancers were led by the consumer goods and health care groups, but the oil and gas, telecom and utility groups lost ground. Friday's win was the first in five sessions.
The week ahead
World Economic Forum
One of the more anticipated events to be held in the week ahead will be The World Economic Forum's annual meeting in Davos, Switzerland. The annual event will host its usual line-up of the global elite, comprising of a range of the world's top bankers, industrial giants and politicians from all corners of the planet. One of the more-watched members of this year's forum will be U.S. president Donald Trump, which will mark the first attendance of a U.S. leader at the premier economic summit since Bill Clinton.
The event commences on Tuesday 23rd January and will be featured by Indian Prime Minister, Narendra Modi, making his opening address before Canada's Justin Trudeau discusses the country's G7 agenda and the Forum's co-chairs discussing the big picture which is "Creating a Shared Future in a Fractured World". The summit will address global challenges like terrorism and environmental degradation.
US Government shutdown
A federal government shutdown is poised to stretch into a third day on Monday as negotiations over government funding and immigration legislation continued to unsettle Washington with senate leaders failing to agree on a bipartisan proposal to reopen the government for the start of the workweek. The setback came despite intense negotiations on Capitol Hill as congressional leaders in both parties searched for a way to end the stalemate.
The shutdown was triggered after Democrats refused to back a temporary deal until their concerns on immigration reform were dealt with. Under Senate rules, the disputed bill needs 60 votes in the 100-member chamber. The Republicans currently have 51 senators, so they need some Democratic support to pass a budget. Hundreds of thousands of federal workers will be unable to report for work and some will not be paid until the dispute is resolved.
Disclaimer:
This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.