By IFCMarkets
US stock market ended mostly higher on Tuesday ahead of Powell’s two-day testimony to Congress starting today. The S&P 500 advanced 0.1% to 2979.63. Dow Jones industrial however slipped 0.1% to 26783.49. The Nasdaq rose 0.5% to 8141.73. The dollar strengthening continued at previous pace as investor anticipate an indication from Fed chair Powell the Federal Reserve still plans to implement a 25 basis point rate cut at July 30-31 meeting while a bigger cut is seen unlikely after stronger than expected June jobs re[port last Friday: 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, added 0.1% to 97.49 and is higher currently. Stock index futures point to lower market openings today
European stocks retreat deepened on Tuesday weighed by a warning of an autos slowdown from German chemicals giant BASF. The GBP/USD and EUR/USD slump continued with both pairs lower currently. The Stoxx Europe 600 ended 0.5% lower led by resources shares. The German DAX 30 fell 0.9% to 12436.55 dragged by more than 3% drop in BASF. France’s CAC 40 slid 0.3%. UK’s FTSE 100 slipped 0.2% to 7536.47 as average retail sales growth weakened to 0.6% in the 12 months to June, the slowest increase since 1995.
Asian stock indices are mixed today. Nikkei fell 0.2% to 21533.48 despite yen continuing slide against the dollar. Chinese stocks are mixed after report China’s consumer inflation held steady last month as slowing non-food prices offset faster gains in food prices: the Shanghai Composite Index is down 0.5% while Hong Kong’s Hang Seng index is 0.2% higher. Australia’s All Ordinaries Index however turned 0.4% higher with Australian dollar sliding further against the greenback as Australian consumer confidence fell to a two-year low.
Brent futures prices are extending gains today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 8.1 million barrels last week. Prices inched up yesterday: September Brent added 0.1% to $64.16 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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