US stocks fall while dollar jumps

August 13, 2018

By IFCMarkets

SP500 pulls back after two consecutive weekly gains

US stock market extended losses on Friday. S&P 500 fell 0.7% to 2833.28, ending 0.5% lower for the week. Dow Jonesindustrial average lost 0.8% to 25313.14. The Nasdaq dipped 0.7% to 7839.11. The dollar strengthening accelerated as core consumer price index inched up to 2.4% over year in July from 2.3% in June: 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, jumped up 0.8% to 96.322 and is higher currently. Stock index futures indicate lower openings today.

DAX 30 opens lower than main European indices

European stocks pulled back on Friday. Both the euro and British Pound extended losses against the dollar and both currencies are lower currently. The Stoxx Europe 600 Index fell 1.1%, ending 0.9% lower for the week. The DAX 30 slumped 2% to 12424.35. France’s CAC 40 lost 1.6% and UK’s FTSE 100 dipped 1% to 7667.01. Investor confidence was undermined by report the European Central Bank has grown increasingly concerned about potential contagion from Turkey’s problems, especially in the banking sector. Indices opened 0.2% – 0.6% lower today.

Asian indices fall

Asian stock indices are falling today as investors worry about global effects of continuing plunge in Turkish asset prices.Nikkei tumbled 2% to 21857.43 as yen climb against the dollar accelerated boosted by rising haven demand. Chinese stocks are lower: the Shanghai Composite Index is down 0.3% and Hong Kong’s Hang Seng Index is 1.5% lower. Australia’s All Ordinaries Index is down 0.4% as the Australian dollar’s slide against the greenback slowed.

Brent slips

Brent futures prices are inching lower today as ongoing slump in emerging markets weighs on expectations for fuel demand. Prices rose Friday on International Energy Agency forecast upgrade for global oil demand growth by 110,000 barrels a day to 1.5 million barrels for 2019: Brent for October settlement rose 1% to close at $72.81 a barrel Friday, ending 0.6% lower for the week.

Market Analysis provided by IFCMarkets


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