Major US stock indexes finished trading in positive territory, helped by the growth of the conglomerate sector and the technology sector, as well as signs that Beijing will weaken its industrial policy "Made in China in 2025".

In addition, investors analyzed inflation data for the United States. The US Department of Labor reported that consumer prices did not change in November, constrained by a sharp decline in gasoline prices, but the underlying inflationary pressure remained steady amid rising rent and health care costs. The report noted that last month the fixed value of the consumer price index followed an increase of 0.3 percent in October. This was the lowest value in eight months. In the 12 months to November, the consumer price index rose 2.2% from an increase of 2.5% in October. Excluding food and energy prices, CPI rose 0.2%, corresponding to an increase in October. In the 12 months to November, the so-called basic consumer price index rose 2.2% after rising 2.1% in October. Economists predicted that the overall CPI will remain unchanged, while the base index will rise by 0.2% in November.

Most of the components of DOW finished trading in positive territory (24 out of 30). The growth leader was DowDuPont Inc. (DWDP, + 2.03%). The outsider was Verizon Communications Inc. (VZ, -2.73%).

Almost all sectors of the S & P showed an increase. The growth leader was the conglomerate sector (+ 1.2%). Only the utility sector decreased (-0.1%).

At the time of closing:

Dow 24,527.27 +157.03 +0.64%

S & P 500 2,651.07 +14.29 + 0.54%

Nasdaq 100 7,098.31 +66.48 + 0.95%

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.2 million barrels from the previous week. At 442.0 million barrels, U.S. crude oil inventories are about 7% above the five year average for this time of year.

Total motor gasoline inventories increased by 2.1 million barrels last week and are about 3% above the five year average for this time of year. Finished gasoline and blending components inventories both increased last week.

Distillate fuel inventories decreased by 1.5 million barrels last week and are about 8% below the five year average for this time of year. Propane/propylene inventories decreased by 3.2 million barrels last week and are about 5% below the five year average for this time of year. Total commercial petroleum inventories decreased last week by 6.0 million barrels last week.

But this means it will be hard for sterling to collect further gains if she does win, ING says, adding that "GBP/USD would struggle to sustain a rally above 1.2650/2700." The rise in sterling will not only be modest, but also temporary. PM May "has to put her withdrawal agreement to parliament and face likely rejection." The pound fell this week to its lowest in 20 months against the dollar after the vote in parliament on the Brexit deal was postponed. - via WSJ

Before the bell: S&P futures +1.08%, NASDAQ futures +1.29%

U.S. stock-index futures surged on Wednesday on signs of possible easing of tensions between the U.S. and China.

Global Stocks:

The decline came in the wake of five consecutive quarterly increases.

The decrease in the third quarter was mainly attributed to declines in the manufacturing industries.

The capacity utilization rate of the manufacturing sector fell 2.9 percentage points to 78.8% in the third quarter. Year over year, the rate was down 1.5 percentage points. The decrease coincided with a decline in output.

Year over year, capacity utilization decreased in 16 of the 21 major manufacturing groups, accounting for approximately 70% of the manufacturing sector's gross domestic product.

The Consumer Price Index for was unchanged in November on a seasonally adjusted basis after rising 0.3 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.2 percent before seasonal adjustment.

The gasoline index declined 4.2 percent in November, offsetting increases in an array of indexes including shelter and used cars and trucks. Other major energy component indexes were mixed, with the index for fuel oil falling but the indexes for electricity and natural gas rising. The food index rose in November, with the indexes for food at home and food away from home both increasing.  

The all items less food and energy index increased 0.2 percent in November. Along with the indexes for shelter and used cars and trucks, the indexes for

medical care, recreation, and water and sewer and trash collection also increased. The indexes for wireless telephone services, airline fares, and motor vehicle insurance declined in November.

Bank of America (BAC) downgraded to Mkt Perform from Outperform at Keefe Bruyette

Morgan Stanley (MS) downgraded to Mkt Perform from Outperform at Keefe Bruyette

Goldman Sachs (GS) downgraded to Neutral from Overweight at Atlantic Equities

Verizon (VZ) downgraded to Equal-Weight from Overweight at Morgan Stanley

• Saudi Arabia Crude Production Surges in November, by 377,000 B/D

• Global Oil Supply Hit 100.64 Mln B/D in November

• OPEC Maintains Demand Forecasts for 2018, 2019

• OECD Oil Inventories Rose to 3.883 Bln Barrels in Oct

Brent crude, the global benchmark, was trading up 1.7% at $61.22 a barrel on London's Intercontinental Exchange.

West Texas Intermediate futures, the U.S. oil standard, were up 1.9% at $52.62 a barrel on the New York Mercantile Exchange.

The American Petroleum Institute, an industry group, reported late Tuesday that U.S. stockpiles of crude oil had reduced by 10.2 million barrels last week. The drop was considerably larger than market expectations of a 3.5 million barrel decline, according to analysts at ING Bank. The U.S. Energy Information Administration is set to release official inventory figures for last week on Wednesday.

In October 2018 compared with September 2018, seasonally adjusted industrial production rose by 0.2% in both the euro area (EA19) and the EU28, according to estimates from Eurostat. In September 2018, industrial production fell by 0.6% in the euro area and by 0.4% in the EU28. In October 2018 compared with October 2017, industrial production increased by 1.2% in the euro area and by 1.3% in the EU28.

In the euro area in October 2018, compared with September 2018, production of capital goods rose by 1.0%, durable consumer goods by 0.4% and intermediate goods by 0.2%, while production of non-durable consumer goods remained stable and the production of energy fell by 1.7%. In the EU28, production of capital goods rose by 0.8%, durable consumer goods by 0.6%, and intermediate goods and non-durable consumer goods by 0.3%, while production of energy fell by 1.4%.

FTSE  +23.08  6830.02 + 0.34%  DAX +39.16 10819.67  + 0.36% CAC +23.44 4829.64  + 0.49%

• UK PM May: I Will Contest Leadership Vote With Everything I’ve Got

EUR/USD

Resistance levels (open interest**, contracts)

$1.1497 (650)

$1.1462 (315)

$1.1442 (136)

Price at time of writing this review: $1.1327

Support levels (open interest**, contracts):

$1.1298 (6616)

$1.1263 (4585)

$1.1225 (2512)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date January, 7 is 66626 contracts (according to data from December, 11) with the maximum number of contracts with strike price $1,1650 (7175);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2781 (106)

$1.2756 (229)

$1.2733 (180)

Price at time of writing this review: $1.2502

Support levels (open interest**, contracts):

$1.2461 (1445)

$1.2436 (1469)

$1.2409 (1195)

Comments:

- Overall open interest on the CALL options with the expiration date January, 7 is 30681 contracts, with the maximum number of contracts with strike price $1,3400 (3847);

- Overall open interest on the PUT options with the expiration date January, 7 is 29370 contracts, with the maximum number of contracts with strike price $1,2450 (2756);

- The ratio of PUT/CALL was 0.96 versus 1.22 from the previous trading day according to data from December, 11

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

A positive start of trading on the stock markets of Europe is expected. The optimistic tone of Asian trading, which emerged from Trump's previous comments on trading, helps to maintain an optimistic attitude towards risk.

"If we don't get what we want one way or another, whether it's through you, through the military, through whatever you want to call, I will shut down the government," Mr. Trump told House Minority Leader Nancy Pelosi (D., Calif.) and Senate Minority Leader Chuck Schumer (D., N.Y.) in the Oval Office.

"I am proud to shut down the government for border security, Chuck."

The consumer mood continues to hold at cautiously optimistic levels. With another reading above 100, December now marks a full year in which optimists have outnumbered pessimists, a turnaround on 2017 which saw ten out of twelve sentiment updates below the 100 line. That said, the margin is still fairly small with some of the detail in the December update on the soft side. The component indexes show more downbeat views on family finances and longer term economic prospects offset by a solid rise in buyer sentiment