By IFCMarkets

US stocks pullback deepened on Thursday as prospect of continued tightening weighed on market sentiment after hawkish Fed minutes. The S&P 500 dropped 1.4% to 2768.78. Dow Jones industrial average fell 1.3% to 25379.45. The Nasdaqcomposite lost 2.1% to 7485.14. The dollar strengthening slowed as initial jobless claims fell to 49-year lows while the Philadelphia Fed manufacturing index for October came in slightly below last month’s reading: 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 95.919 but is lower currently. Futures on stock indices point to higher openings today.

European stocks extended losses on Thursday despite positive earnings reports. Both the EUR/USD and GBP/USDcontinued falling, with GBP/USD rising currently while EUR/USD still lower. The Stoxx Europe 600 index lost 0.5%. Germany’s DAX 30 dropped 1.1% to 11589.21. France’s CAC 40 slid 0.6% and UK’s FTSE 100 slipped 0.4% to 7026.99. Markets opened mixed today.

Asian stock indices are mixed today as Chinese stocks rallied paring earlier losses after lower than expected GDP growth. China’s gross domestic product grew 6.5% in the third quarter from the same quarter a year earlier when a 6.6% growth was expected: the Shanghai Composite Index is 2.6% higher and Hong Kong’s Hang Seng Index is up 0.5%. Nikkei however lost 0.6% to 22532.08 despite resumed yen weakness against the dollar. Australia’s All Ordinaries Index slipped 0.1% while Australian dollar turned higher against the greenback.

Brent futures prices are gaining today on expected rise in Chinese demand for crude as state-owned Chinese refiners return to service after maintenance. Prices ended lower yesterday after a report US domestic crude inventories rose sharply last week – 6.5 million barrels. Brent for December settlement closed 1% lower at $79.29 a barrel on Thursday.

Market Analysis provided by IFCMarkets

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