By IFCMarkets

US equities pullback slowed on Thursday after S&P 500 and Dow logged their biggest one-day drop since February. TheS&P 500 fell 2.1% to 2728.37 with all of the 11 mains sectors ending lower. Dow Jones industrial average lost 2.1% to 25052.83. The Nasdaq composite slid 1.3% to 7329.06 after dipping briefly into correction territory – declining more than 10% from the most recent 52-week high. The dollar weakening accelerated after data showed lower than expected inflation for September. 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, fell 0.5% to 95.006 and is lower currently. Futures on stock indices indicate higher openings today.

European stocks selloff deepened on Thursday as US market pullback continued. The EUR/USD accelerated its gain after the ECB minutes suggested the central bank was on track to normalize its loose monetary policy this year. The GBP/USDcontinued climbing, both pairs are rising currently. The Stoxx Europe 600 index tumbled 2%. Germany’s DAX 30 dropped 1.5% to 11539.35. France’s CAC 40 slumped fell 1.9% and UK’s FTSE 100 lost 1.9% to 7006.93. Markets opened 0.4% – 1.2% higher today.

Asian stock indices are rebounding today after softer than expected US inflation report gave rise to hopes the lower than expected inflation reading may give a pause to Federal Reserve’s push for rate hikes. Nikkei recovered 0.5% to 22694.66 helped also by resumed yen weakness against the dollar. Chinese stocks are rebounding after data indicated China’s September exports surged: the Shanghai Composite Index is 0.9% higher and Hong Kong’s Hang Seng Index is up 1.8%. Australia’s All Ordinaries Index recovered 0.2% while Australian dollar continued edging higher against the greenback.

Brent futures prices are gaining today on signs global equities are rebounding after two day selloff. Prices ended lower yesterday after a report US domestic crude inventories rose sharply last week – 6 million barrels. Brent for December settlement closed 3.4% lower at $80.26 a barrel on Thursday.

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