By IFCMarkets
US stock market retreat continued Thursday with no results in US-Canada trade talks yet. The S&P 500 lost 0.4% to 2878.05. Dow Jones industrial average however defied the broader trend yet again gaining 0.1% to 25995.87. The Nasdaqcomposite fell 0.9% to 7922.73. The dollar weakening slowed on mixed data: 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, slipped 0.1% to 95.00 and is lower currently. Futures on three main US stock indices indicate lower openings today.
US and Canada negotiations continued with no apparent resolution to contentious issues such as opening of Canadian dairy market to US producers and scrapping of trade dispute mechanism of old North American Free Trade Agreement. Economic data were mixed: the Institute for Supply Management’s August read on the services sector rose to 58.5% from 55.7% in the previous month, while the US created 163,000 private sector jobs in August, according to payrolls processor ADP. This was below the forecast of 182,000 new jobs.
European stocks added to recent losses on Thursday on mixed economic data. The EUR/USD turned lower while GBP/USDcontinued gaining with both pairs higher currently. The Stoxx Europe 600 index slid 0.6%. Germany’s DAX 30 fell 0.7% to 11955.25. France’s CAC 40 ended 0.3% lower and UK’s FTSE 100 dropped 0.9% to 7318.96. Indices opened 0.04% – 0.1% higher today
Mixed Germany data did little to boost market sentiment: factory orders in Europe’s largest economy fell 0.9% over year in July when a 1.9% increase was expected, while construction sector activities expanded in August.
Asian stock indices are mixed today with markets bracing for new tariffs as the September 6 deadline for US companies comments on duties for $200 billion worth Chinese imports proposed by President Trump expired. Nikkei ended 0.8% lower at 22307.06 as yen climb against the dollar accelerated. Chinese stocks are higher: the Shanghai Composite Index is 0.4% higher while Hong Kong’s Hang Seng Index is down 0.2%. Australia’s All Ordinaries Index extended losses 0.3% despite Australian dollar’s turn lower against the greenback.
Brent futures prices are advancing today underpinned by a decline in US Crude oil stockpiles. The Energy Information Administration reported Thursday that domestic crude supplies fell by 4.3 million barrels last week ended August 31. Prices ended lower yesterday: Brent for November settlement closed 1% lower at $76.50 a barrel on Thursday.
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