SP500 edges lower on mixed data

October 1, 2018

By IFCMarkets

Dollar strengthening slows as PCE ticks lower

US stock market ended marginally lower on Friday on mixed economic data. S&P 500 edged 0.02 point lower to 2913.98, closing 0.5% lower for the week. Dow Jones industrial average however rose 0.1% to 26458.31. The Nasdaq gained 0.05% to 8046.35. The dollar strengthening slowed as the 12-month increase in the PCE index, the Federal Reserve’s preferred inflation gauge, fell to 2.2% in August from 2.3%: 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, gained 0.3% to 95.211 but is lower currently. Futures on stock indices point to sharply higher openings today after news US and Canada reached a trade deal rescuing the NAFTA.

DAX 30 opens higher than main European indices

European stocks ended lower on Friday led by Italian bank shares as Italy’s coalition government agreed to a 2019 budget deficit of 2.4% of GDP. Both the GBP/USD and EUR/USD continued their decline but are higher currently. The Stoxx Europe 600 Index slid 0.8%, booking 0.3% loss for the week. The DAX 30 fell 1.5% to 12246.73. France’s CAC 40 retreated 0.9% and UK’s FTSE 100 ended 0.5% lower at 7510.20. Markets opened mixed today.

NIKKEI ends at 27-year high

Asian stock indices are mostly lower today despite a boost to global market sentiment after US and Canada agreed to a new trade deal overnight. Stock markets in China and Hong Kong are closed for a holiday. Nikkei rose 0.5% to 27-year high 24245.76 despite a continued decline in large manufacturers confidence for the third straight quarter in three months to September while yen slide against the dollar accelerated. Australia’s All Ordinaries Index turned 0.6% lower despite Australian dollar’s turn lower against the greenback.

Brent down

Brent futures prices are edging lower today. Prices rose on Friday as oil services firm Baker Hughes reported the number of rigs drilling for oil in the US fell by 3 last week, second consecutive weekly drop: Brent for December settlement added 1.7% to close at $82.73 a barrel Friday, rising 5% for the week.

Market Analysis provided by IFCMarkets


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