By IFCMarkets
Dollar weakens as inflation slows
US stock market ended higher on Wednesday supported by news China is prepared to allow foreign corporations greater access to the Chinese market. The S&P 500 added 0.5% to 2651.07. The Dow Jones industrial average rose 0.6% to 24527.27. Nasdaq composite index rallied 1% to 7098.31. The dollar weakening resumed as consumer price inflation ticked lower to 2.5% over year in November from 2.5% 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, fell 0.2% to 97.01 but is higher currently. Futures on stock indexes point to higher openings today.
CAC 40 rally leads European indices
European stocks extended gains on Wednesday led by banking and energy shares. Both the EUR/USD and GBP/USD resumed climbing with euro rising but Pound lower currently. The Stoxx Europe 600 rallied 1.7%. Germany’s DAX 30 rose 1.4% to 10929.43. France’s CAC 40 jumped 2.2% and UK’s FTSE 100 advanced 1.1% to 6880.19.
Hang Seng leads Asian indices gains
Asian stock indices added to previous day gains today. Nikkei gained 1% to 21816.19 as yen resumed its slide against the dollar. China’s stocks are higher: the Shanghai Composite Index is up 1.2% and Hong Kong’s Hang Seng Index is 1.4 % higher. Australia’s All Ordinaries Index edged up 0.1% despite the Australian dollar’s accelerating climb against the greenback.
Brent up on smaller than expected US crude stocks dip
Brent futures prices are edging higher today. Prices ended lower yesterday as the Energy Information Administration reported that US crude stockpile fell 1.2 million barrels last week, the first weekly decline in eleven weeks. Yesterday the American Petroleum Institute reported that US crude supplies fell by 10.2 million barrels. Prices fell: February Brent crude lost less than 0.1% to $60.15 a barrel on Wednesday.
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