By IFCMarkets
US stock market rally endured on Tuesday on US-Mexico trade deal optimism despite mixed data. The S&P 500 added 0.03% to 2897.52. Dow Jones industrial average gained 0.1% to 26064.02. The Nasdaq composite index climbed 0.2% to 7859.17. The dollar weakening halted virtually: 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, ended 0.04% lower at 94.688 but is higher currently. Stock index futures point to mixed openings today.
Monday announcement US reached a preliminary trade deal with Mexico and negotiations with Canada planned to resume today provided the boost to market sentiment which carried the market past its January highs. Economic data were mixed: Conference Board’s index of consumer confidence jumped from 127.9 in July to 133.4 this month, the strongest reading since October 2000. While this index of consumer confidence outperformed its previous post-recession peak of 130 in February, the trade deficit in goods rose 6.3% to $72.2 billion last month from a downwardly revised $67.9 billion in June. And home prices growth slowed in June.
European stocks pulled back on Tuesday led by Italian and Spanish shares. The EUR/USD slowed its climb while GBP/USDturned lower and both are down currently. The Stoxx Europe 600 inched lower 0.03%. The German DAX 30 lost 0.1% to 12527.42. France’s CAC 40 however added 0.1% while UK’s FTSE 100 climbed 0.5% to 7617.22 after three-day weekend. Markets opened 0.1% – 0.2% higher today.
Euro got a support from reports Germany was considering extending financial aid to Turkey to help overcome the lira crisis. Reports indicated Germany wouldn’t offer direct financial aid and was considering alternatives as German policy makers were worried about the spread of financial crisis to euro-zone as Turkey’s economic problems deepen.
Asian stock indices are mixed today. Nikkei gained 0.15% to 22848.22 helped by continued yen slide against the dollar. Chinese stocks are falling with no signs of US-China trade dispute resolution in sight as the White House said it wants to settle North American Free Trade Agreement before dealing with China: the Shanghai Composite Index is down 0.3% while Hong Kong’s Hang Seng index is 0.02% lower. Australia’s All Ordinaries Index added to gains by 0.8 percentage points helped by continued Australian dollar’s slide against the greenback.
Brent futures prices are extending losses today on expectations of rising US crude stocks. The American Petroleum Institute reported late Tuesday that US crude inventories edged higher by 38 thousand barrels to 405.7 million last week. Prices ended lower yesterday: October Brent lost 0.3% to $75.95 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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