By IFCMarkets
US stock indices ended solidly higher Thursday led by technology rally. The S&P 500 gained 0.9% to 2736.61. Dow Jonesindustrial average added 0.8% to 24356.74. The Nasdaq composite rallied 1.1% to 7586.43. The dollar weakening accelerated: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slid 0.1% to 94.374 and is lower currently. Stock index futures indicate lower openings today.
The Federal Reserve June meeting minutes revealed policy makers deemed in early June that negative risks from US trade policy “had intensified”. At the same time there was broad support among policy makers of continued “gradual” rate hikes: officials noted that the benchmark federal funds rate could be at or above its “neutral” level that neither boosts or dampens activity “sometime next year.”
European stocks kept rising on Thursday led by automaker shares. The euro turned higher against the dollar while theBritish Pound turned lower and both are up currently. The Stoxx Europe 600 index added 0.4%. Germany’s DAX 30 jumped 1.2% to 12464.29. France’s CAC 40 rose 0.9% and UK’s FTSE 100 gained 0.4% to 7603.22. Indices opened 0.1% – 0.4% higer today.
Automaker shares rallied on reports President Donald Trump was prepared to suspend threats to impose tariffs on cars imported from the European Union if the bloc lifted duties on US cars. In economic news German factory orders rebounded in May, rising 4.4% over the same month a year ago after 0.1% decline in April when 1.7% growth was expected.
Asian stock indices are mostly higher today despite President Donald Trump’s threat Thursday the US could soon impose tariffs on more than $500 billion in Chinese imports. Nikkei ended 1.2% higher at 21,788.14 despite yen climb against the dollar. Chinese stocks are gaining notwithstanding US tariffs on $34 billion in Chinese imports that took effect as the deadline passed: the Shanghai Composite Index is 0.5% higher and Hong Kong’s Hang Seng Index is up 0.5%. Australia’s All Ordinaries Index is up 0.9% as Australian dollar accelerated gains against the greenback.
Brent futures prices are extending losses today. Prices ended lower yesterday after a surprise buildup in US domestic crude inventories. The Energy Information Administration reported Thursday that crude stockpiles rose by 1.2 million barrels last week when a drop was expected. Brent for September settlement closed 1.1% lower at $77.39 a barrel on Thursday.
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