By IFCMarkets
US stock market retreat halted on Thursday as bond yields halted their slide. The S&P 500 added 0.2% to 2788.86. The Dow Jones industrial average gained 0.2% to 25169.88. Nasdaq composite index advanced 0.3% to 7567.72. The dollar strengthening slowed as the estimate for first-quarter gross domestic product growth was lowered to 3.1%, from the initial reading of 3.2%. 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, edged up 0.05% to 98.17 but is lower currently. Futures on US stock indices point to lower openings today.
European stocks pullback halted on Thursday. Both EUR/USD and GBP/USD extended losses with both pairs rising currently. The Stoxx Europe 600 index added 0.4% led by media firms’ shares. Germany’s DAX 30 rose 0.5% to 11902.08. France’s CAC 40 inched up 0.2% and UK’s FTSE 100 gained 0.4% to 7218.16.
Asian stock indices are falling today after Trump’s late Thursday tweet that the US would impose a 5% tariff on all goods from Mexico until that country stops the flow of illegal immigrants into the country. The tariffs will rise to 10% on July 1 if the crisis persists, and by another 5% for every successive month, up to 25% by October 1. Nikkei fell 1.6% to 20601.19 as yen jumped against the dollar. Chinese shares are retreating after report China’s manufacturing activity contracted in May: the Shanghai Composite Index is down 0.8% and Hong Kong’s Hang Seng Index is 0.8% lower. Australia’s All Ordinaries Index extended losses another 0.9% with Australian dollar turning higher against the greenback.
Brent futures prices are extending losses today. Prices sank yesterday after the Energy Information Administration report of a smaller than expected drop in US inventories: the US crude oil stock fell just 300 thousand barrels last week while domestic output rose by 100 thousand to record 12.3 million a day. July Brent crude dropped 3.7% to $66.87 a barrel on Thursday.
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