Divine Capital CEO Dani Hughes and Belpointe chief strategist David Nelson give their market predictions for 2020.
U.S. equity futures are beginning the new year with a rally on optimism about the U.S. -China trade deal after President Trump gave a timetable for the signing ceremony.
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The major futures indexes are indicating a rise of 0.6 percent, giving the Dow Industrials a gain of more than 100 points.
France’s CAC 40 rose 0.8 percent, Germany’s DAX was little changed and Britain’s FTSE added 0.8 percent.
In Asian markets, Hong Kong’s Hang Seng jumped 1.1 percent and China’s Shanghai Composite gained 1.2 percent. Tokyo was still closed for the New Year’s holiday.
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Regional market sentiment has been on an upswing after President Donald Trump said an initial trade deal with China would be signed later this month. The “Phase 1” trade deal calls for the U.S. to reduce tariffs and China to buy larger quantities of U.S. farm products.
Weighing on the optimism was an announcement earlier in the week from North Korean leader Kim Jong Un that his country will soon reveal a new strategic weapon and that North Korea was no longer obligated to maintain a self-imposed suspension on the testing of nuclear weapons and intercontinental ballistic missiles.
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Adding to the optimism was China’s central bank announcement Wednesday it will cut the amount of money banks will be required to have on hand from Jan. 6 in an effort to boost the slowing economy.
The People’s Bank of China said the reserve requirement ratio for financial institutions would be lowered by 50 basis points, a move that’s expected to release about 800 billion yuan ($114.6 billion) into the economy for lending purposes.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 28538.44 | +76.30 | +0.27% |
| SP500 | S&P 500 | 3230.78 | +9.49 | +0.29% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8972.603947 | +26.61 | +0.30% |
On Tuesday, the last day of U.S. trading for 2019, the S&P 500 rose 0.3 percent, to 3,230.78. The Dow gained 0.3 percent to 28,538.44. The Nasdaq also climbed 0.3 percent, to 8,972.60.
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Wall Street closed the books on a blockbuster 2019 for stock investors, with the broader market delivering its best returns in six years.
The S&P 500 finished with a gain of 28.9 percent for the year.
The Nasdaq composite rose 35.3 percent. For both indexes it was the best annual performance since 2013.
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The Dow Jones Industrial Average gained 22.3 percent.
The Associated Press contributed to this article.
