Stocks look set to extend their gains in 2020 as markets around the world rally to ring in the New Year.
Stocks began January by building on gains achieved for many asset classes in 2019. Investors seem to be applauding the latest policy move by China’s central bank to support its economy.
Contracts on the main U.S. equity benchmarks all rose in the wake of one of the best years for American stocks in the past decade, and the Stoxx Europe 600 Index advanced for the first session in three as every sector traded higher.
Similarly, markets in Hong Kong and Shanghai jumped more than 1% after the People’s Bank of China said it will increase the supply of cheap funding to banks, in line with market expectations.
The U.S. dollar moved higher as U.S. jobless claims dropped to a four-week low.
After a stellar 2019 across most major assets, focus now shifts to the year ahead. January 2 gave investors the latest read on Chinese manufacturing, with the Caixin Purchasing Managers Index dipping slightly from its November level but remaining well in the expansionary zone. On the trade front, U.S. President Donald Trump earlier this week said he expects to sign the first phase of a deal with China on January 15, an announcement that boosted markets globally.
