Market Recap: 12/10/18

Here is your recap of various markets for December 10, 2018.

The United States

It was another volatile day for U.S. stocks on Monday. Both the Dow Jones and the S&P 500 finished with small increases on the day (0.14% and 0.18% respectively) after opening with sharp drops. Tech was a large contributor to the swings once again.

Apple headlined the day with a price drop after receiving a sales ban in China on older IPhone models. This stems from Apple’s on going dispute over patents with Qualcomm. They ended up reversing these early pains and finished up 0.66% for the day. This is likely partly due to the IPhone XS, XS Max, and XR being exempt from the ban.

IBM (+1.5%) and Microsoft (+2.64%) also finished with strong gains for the day, helping to push the major U.S. indexes into the green by closing.

Europe

Europe continued recent woes, with the Stoxx 600 down 1.87%. This came on the heels of the U.K. vote on a Brexit deal being delayed by Prime Minister Theresa May. The delay puts the likelihood of a deal even further into jeopardy. With the U.K.’s planned departure only 3 months away, more delays put them at further risk of leaving without a deal and having to live with the major economic disruption it would cause.

These Brexit stresses also pushed the pound down as much as 1.5% against the dollar during the day.

On top of this, trade and tariff worries continue to plague the more export-dependent countries of the E.U., with Germany’s DAX index down 1.54%. Germany’s economy is widely dependent on exports, which account for roughly 45% of their GDP.

Oil Markets

Oil is feeling downward pressure still, with the Brent global index reaching as low as $59.70 a barrel during the day. Brent finished around $60 a barrel, down from its $62 start.

Oil continues to struggle as investors speculate as to whether or not the agreed OPEC production cuts from this weekend will be able to quell a growing global oil supply. With the U.S. pumping its way into being a net oil exporter at the end of November, analysts are growing more and more skeptical of the cartel’s ability to control global supply and prices.

 

 

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