By IFCMarkets
US stock market retreat continued on Monday ahead of Federal Reserve two-day policy meeting starting today. The S&P 500 lost 2.1% to 2545.94. Dow Jones industrial fell 2.1% to 23592.98. The Nasdaq composite index dropped 2.3% to 6753.73. The dollar turned lower as the Empire State index for December indicated manufacturing activity grew at a sharply slower pace in the New York region compared with November: 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, fell 0.3% to 97.12 and is lower currently. Futures on stock indexes point to higher openings today.
European stocks retreat accelerated on Monday led by retailer stocks after disappointing earnings reports. Both he EUR/USD and GBP/USD turned higher with Pound currently rising while the single currency lower against the dollar. The Stoxx Europe 600 index lost 1.1%. The DAX 30 fell 0.9% to 10772.20. France’s CAC 40 slumped 1.1% and UK’s FTSE 100 slid 1.1% to 6773.24.
Asian stock indices gave back previous session gains today as global growth slowing concerns overshadowed expectations of more stimulus by Chinese government. Nikkei fell 1.8% to 21115.45 with yen‘s climb against the dollar continuing. Chinese shares are falling: the Shanghai Composite Index is down 0.6% and Hong Kong’s Hang Seng Index is 1.1% lower. Australia’s All Ordinaries Index fell 1.1% with Australian dollar climbing against the greenback.
Brent futures prices are edging lower today on signs of building global supply glut. Prices fell yesterday after US Energy Information Administration forecast a rise of 134,000 barrels a day in US shale oil production for January to 8.166 million barrels a day in its monthly Drilling Productivity report. February Brent crude fell 1.1% to $59.61 a barrel on Monday.
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