Fed signals no change in plans

November 9, 2018

By IFCMarkets

SP500, Nasdaq slip while Dow inches up

US equities pulled back on Thursday as the Federal Reserve stood pat. The S&P 500 slid 0.3% to 2806.83. Dow Jones industrial average however managed to inch up 0.04% to 26191.22. The Nasdaq composite lost 0.5% to 7530.88. The dollar strengthening resumed as traders deemed the absence of any signal of a change in Fed’s monetary policy means a coming hike in December with three other increases in 2019. 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 0.5% to 96.623 and is higher currently. Futures on stock indices point to lower openings today.

European indices open lower

European stocks rebound continued on Thursday led by bank shares on positive earnings reports. Both the EUR/USD and GBP/USD turned lower and are retreating currently. The Stoxx Europe 600 index added 0.2%. Germany’s DAX 30 however fell 0.5% to 11527.32. France’s CAC 40 slipped 0.1% and UK’s FTSE 100 gained 0.3% to 7140.68. Indices opened 0.4% – 0.6% lower today.

Hang Seng leads Asian indices retreat

Asian stock indices are mostly lower today. Nikkei retreated 1.1% to 22250.25 as yen resumed climb against the dollar. Chinese stocks are solidly lower as producer prices inflation slowed again in October: the Shanghai Composite Index is down 1.4% and Hong Kong’s Hang Seng Index is 2.6% lower. Australia’s All Ordinaries Index slipped 0.1% despite Australian dollar continued slide against the greenback.

Brent slips on higher global output data

Brent futures prices are inching lower today. Prices ended lower yesterday after reports global production rose considerably last month ahead of US sanctions on Iran: Brent for January settlement closed 2% lower at $70.65 a barrel on Thursday.

Market Analysis provided by IFCMarkets


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