By IFCMarkets
Fed expected to leave rates in 2.25-2.50 range
US stock market ended mixed on Tuesday as investors awaited the conclusion of Fed’s two-day meeting today. The S&P 500 gained 0.1% to third straight all time high at 2945.83. Dow Jones industrial rose 0.2% to 26592.91. The Nasdaq however fell 0.7% to 8107.77 weighed by 7.7% drop in Google on disappointing revenue growth. The dollar weakening accelerated ahead of Fed’s interest rate decision: the central bank is expected to keep rates on hold despite President Trump’s call on Fed to cut rates by a full percentage point. 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 97.52 and is lower currently. Futures on US stock indexes point to higher openings today.
FTSE 100 underperforms European indexes
European stocks paused on Tuesday despite positive euro zone economic growth data. Both EUR/USD and GBP/USD continued climbing and are higher currently. The Stoxx Europe 600 ended flat, gaining 3.2% for the month. The German DAX 30 edged up 0.1% to 12344.08, France’s CAC 40 gained 0.1%. UK’s FTSE 100 however dipped 0.3%. Markets in Germany, France, Switzerland and Italy will stay closed for Labor Day holiday.
Australia’s All Ordinaries Index gains while most markets are closed
Asian stock indices are mostly closed today for Labor Day holiday. Japan’s markets are closed for a 10-day holiday, prince Naruhito was installed as emperor of Japan after his father abdicated. Australia’s All Ordinaries Index rebounded 0.8% led by bank shares despite Australian dollar’s turn higher against the greenback.
Brent down on expected US crude stocks build
Brent futures prices are edging lower today. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 6.8 million barrels last week while gasoline inventories fell by 1.1 million. Prices ended higher yesterday. July Brent rose 0.7% to $72.06 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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