By IFCMarkets

US stock market extended gains on Wednesday after Powell testimony confirmed Federal Reserve plans a rate cut in July. The S&P 500 rose 0.5% to 2993.07. The Dow Jones industrial average gained 0.3% to 26860.20. Nasdaq composite index advanced 0.8% to record 8202.53. The dollar strengthening reversed as Powell comments emphasized rising risks to the US economy from trade policy and slowing global growth, as well as falling price inflation. 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 0.4% to 97.10 and is lower currently. Stock index futures point to higher market openings today

European stocks continued retreating on Wednesday. Both EUR/USD and GBP/USD turned higher with both pairs rising currently. The Stoxx Europe 600 lost 0.2% led by telecom shares. Germany’s DAX 30 fell 0.5% to 12373.41. France’s CAC 40 slid 0.1% and UK’s FTSE 100 slipped 0.1% to 7530.69 despite data showing UK economy expanded by above expected 0.3% in May after contracting 0.4% in April.

Asian stock indices are rising today. Nikkei rebounded 0.5% to 21643.53 with yen continuing its climb against the dollar. Chinese stocks are gaining: the Shanghai Composite Index is up 0.1% and Hong Kong’s Hang Seng Index is 0.8% higher. Australia’s All Ordinaries Index extended gains 0.4% despite Australian dollar’s continuing climb against the greenback.

Brent futures prices jumped today as a storm built in the Gulf of Mexico. Prices rebounded yesterday after the Energy Information Administration report US crude inventories dropped by bigger than expected 9.5 million barrels last week while gasoline inventories declined by 1.5 million. September Brent crude jumped 4.4% to $67.01 a barrel on Wednesday.

Market Analysis provided by IFCMarkets

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