By IFCMarkets
Fed’s two day meeting starts today
US stocks pulled back Monday despite positive earnings reports. The S&P 500 fell 0.8% to 2648, with all 11 main sectors finishing lower. The Dow Jones industrial lost 0.6% to 24163.15. The Nasdaq composite index declined 0.8% to 7066. The dollar strengthening resumed: live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.3% to 91.795. Stock indices futures point to higher openings today.
Stocks retreated ahead of Federal Reserve two day meeting starting today. Investors are weighing the odds the central bank may opt to hike interest rates three more times this year instead of two as data point to pick up in inflation. The personal consumption expenditure (PCE) index, the Federal Reserve’s preferred inflation gauge, rose to 2% year over year in March from a 1.7% in February, hitting the central bank’s 2.0% target for the first time in a year. Core PCE inflation climbed to 1.9% year over year, its biggest gain since April 2012. Treasury yields slipped however, as investors sold off stocks.
European stocks log sixth straight weekly gain
European stocks ended higher Monday as investors risk appetite was boosted by weaker currencies and merger news. The euro rejoined the British Pound’s extended slide against the dollar. The Stoxx Europe 600 index rose 0.2%. The DAX 30 gained 0.3% to 12612.11, France’s CAC 40 outperformed ending up 0.7% and UK’s FTSE 100 advanced 0.1% to 7509.30. Markets in Germany, France, Switzerland and Italy are closed today for Labor Day.
Supermarket shares led advancers as Sainsbury’s stock jumped 14.5% on news it agreed to merge with Asda, Wallmart’s UK business. Weak economic data weighed on euro: German retail sales unexpectedly fell in March, declining 0.6% month-on-month, while headline inflation remained at 1.6%.
Australian stocks lead Asian indices gains
Asian stock indices are mixed today with many markets closed for the Labor Day holiday. Nikkei rose 0.2% to 22508.03 helped by continued yen slide against the dollar. China’s market are closed for holiday. Australia’s All Ordinaries Index is up 0.5% with Australian dollar little changed against the US dollar.
Brent up
Brent futures prices are edging higher today. Prices rallied yesterday on rising Middle East tensions after Israeli Prime Minister Netanyahu accused Iran of lying about nuclear program. July Brent crude settled 1.2% higher at $74.69 barrel on Monday.
Market Analysis provided by IFCMarkets
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
