By IFCMarkets

US stocks pullback continued on Tuesday as industrials fell on slowing China growth concerns. The S&P 500 fell 0.6% to 2740.69. Dow Jones industrial average lost 0.5% to 25191.43 pairing earlier losses. The Nasdaq composite index slid 0.4% to 7437.54. The dollar weakened: 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 95.901 but is higher currently. Futures on stock indices indicate lower openings today.

European stocks tumbled on Tuesday on weak corporate reports while the European Commission rejected Italy’s budget proposal for 2019 which plans to raise budget deficit to 2.4% of gross domestic product, and asked the Italian government to rework it. Both the EUR/USD and GBP/USD turned higher but are lower currently. The Stoxx Europe 600 lost 1.6%. The German DAX 30 tumbled 2.2% to 11274.28. France’s CAC 40 dropped 1.7% and UK’s FTSE 100 slid 1.2% to 6955.21. Indices opened 0.2% – 0.5% higher today.

Asian stock indices are mixed today after a weak session on Wall Street overnight. Nikkei ended 0.4% higher at 22091.18 with yen turning lower against the dollar after Japanese government bond prices rose as the Bank of Japan did not signal any possible change in its bond buying operation. Chinese stocks are recovering following the selloff the previous day as China’s state planner said it would step up financial support for regions most hit by the ongoing trade war between Washington and Beijing: the Shanghai Composite Index is up 0.3% while Hong Kong’s Hang Seng index is 0.2% lower. Australia’s All Ordinaries Index extended losses 0.2% as Australian dollar continued its climb against the greenback.

Brent futures prices are edging higher today as likely tightening of global supplies with the start of US sanction on Iran came into focus again. Prices fell yesterday as traders mulled over Saudi energy minister Khalid al-Falih’s comment Saudi Arabia would increase crude production to 11 million barrels a day, compared with its current average of 10.7 million barrels a day. The American Petroleum Institute reported late Tuesday that US crude inventories rose by 9.9 million barrels last week. Prices tumbled yesterday: December Brent fell 4.3% to $76.44 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.

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