By IFCMarkets
Dollar strengthens despite slower services expansion
US stock market extended gains on Tuesday on upbeat corporate reports. The S&P 500 added 0.5% to 2737.70. Dow Jones rose 0.7% to 25411.52. The Nasdaq gained 0.7% to 7431.50. The dollar strengthening continued despite Institute for Supply Management’s nonmanufacturing index showing US services sector expanded at a slower pace in January. 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 0.3% to 96.04 and is higher currently. Futures on US stock indexes point to lower openings today.
FTSE 100 still outperforms European Indices
European stocks ended solidly higher on Tuesday led by energy and bank shares. Both the EUR/USD and GBP/USD continued falling and are lower currently. The Stoxx Europe 600 gained 1.4%. The German DAX 30 rose 1.7% to 11367.98, France’s CAC 40 advanced 1.7% and UK’s FTSE 100 rallied 2.0% to 7177.37.
Asian indices advance
Asian stock indices are gaining today amid reports US Trade Representative Robert Lighthizer and Treasury Secretary Stephen Mnuchin plan to travel to Beijing next week for trade talks. Nikkei added 0.1% to 20874.06 while yen resumed its climb against the dollar. Chinese and Hong Kong’s markets are closed for Lunar New Year. Australia’s All Ordinaries Index gained 0.3% as the Australian dollar resume its slide against the greenback.
Brent retreats
Brent futures prices are extending losses today. Prices ended lower yesterday. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 2.5 million barrels last week as did gasoline inventories. April Brent lost 0.9% to $61.98 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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