By IFCMarkets
US equities rebounded on Tuesday after President Trump’s late Monday comment the US “will make a great deal with China and it has to be great, because they’ve drained our country.” The S&P 500 gained 1.6% to 2682.63. Dow Jones industrial average rallied 1.8% to 24874.64 recovering previous session’s 1% loss. The Nasdaq composite index rose 1.6% to 7161.65. The dollar strengthening continued despite mixed data as home price gains slowed in August while consumer confidence by Conference Board strengthened further in October: 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, rose 0.3% to 96.996 and is higher currently. Futures on stock indices indicate higher openings today.
European stocks ended marginally higher on Tuesday after mixed earnings reports and disappointing data. German inflation hit the highest levels since 2008 while third quarter euro-zone GDP slowed more than expected. Both the EUR/USD and GBP/USD continued retreating but are higher currently. The Stoxx Europe 600 added less than 0.1%. The German DAX 30 slid 0.4% to 11287.39. France’s CAC 40 slipped 0.2% while UK’s FTSE 100 gained 0.1% to 7035.83. Indices opened 0.9% – 1.4% higher today.
Asian stock indices are rising today after a rebound on Wall Street overnight. Nikkei ended 2.2% higher at 21920.46 as yen retreat against the dollar continued after the Bank of Japan left policy unchanged. Chinese stocks are recovering on policymakers’ pledges of more stimulus while data showed China factory activity fell to 27-month low: the Shanghai Composite Index is up 1.2% and Hong Kong’s Hang Seng index is 1.1% higher. Australia’s All Ordinaries Index extended gains 0.4% as Australian dollar turned lower against the greenback.
Brent futures prices are edging higher today. Prices fell yesterday. The American Petroleum Institute reported late Tuesday that US crude inventories rose by 5.7 million barrels last week. December Brent fell 1.9% to $75.91 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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