By IFCMarkets
US stock indexes pulled back on Tuesday as President Trump tweeted China may be waiting to see if Democrats win election but warned that “if & when I win, the deal that they get will be much tougher than what we are negotiating now…or no deal at all.” The S&P 500 lost 0.3% to 3013.18 with mixed corporate reports providing little support. Dow Jones industrial slipped 0.1% to 27198.02. The Nasdaq lost 0.2% to 8273.61. The dollar strengthening paused ahead widely expected Fed decision of a 25 basis point rate cut today while core personal consumption expenditure index increased at previous month’s pace of 0.2% over month in June: 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, gained less than 0.1% to 98.06 but is lower currently. Stock index futures point to higher market openings today
European stocks ended sharply lower on Tuesday undermined by weak earnings reports and renewed US-China trade war concerns after President Trump hardened his rhetoric in tweets. The EUR/USD continued its climb with GBP/USD’s slump intact yesterday but both pairs are higher currently. The Stoxx Europe 600 ended 1.5% lower. The German DAX 30 dropped 2.2% to 12147.24 dragged by Bayer and Lufthansa losses while GfK reported German consumer confidence fell third consecutive month. France’s CAC 40 fell 1.6%. UK’s FTSE 100 lost 0.5% to 7646.77.
Asian stock indices turned lower today as President Trumps warned China that any deal after 2020 election would be much tougher after he is re-elected. Nikkei lost 0.9% to 21521.53 as yen climb against the dollar slowed. Chinese stocks are falling as data showed China’s factory activity contracted again in July: the Shanghai Composite Index is down 0.7% and Hong Kong’s Hang Seng index is 1.2% lower. Australia’s All Ordinaries Index fell 0.5% as Australian dollar’s climb against the greenback resumed.
Brent futures prices are edging lower today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 6 million barrels last week. Prices rose yesterday: October Brent gained 1.6% to $66.63 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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