By IFCMarkets
US stock indexes rebounded on Thursday as the People’s Bank of China set the yuan’s reference rate at 7.0039 against one US dollar. The S&P 500 rose 1.9% to 2938.72. The Dow Jones industrial average recovered 1.4% to 26378.19. Nasdaq composite index rallied 2.2% to 8039.16. The dollar weakening resumed despite an 8000 drop in initial jobless claims in the previous week: 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, slipped 0.1% to 97.54 but is higher currently. Stock index futures point to lower market openings today
European stocks broadened recovery on Thursday as bond yields stabilized. Both EUR/USD and GBP/USD continued declining and move in previous session’s directions currently. The Stoxx Europe 600 index ended 1.4% higher led by resources shares. Germany’s DAX 30 gained 1.7% to 11845.41. France’s CAC 40 rallied 2.3% and UK’s FTSE 100 advanced 1.2% to 7285.9.
Asian stock indices are mixed today amid reports Trump administration was holding off on approving licenses for US companies to resume doing business with China’s blacklisted Huawei. Nikkei rose 0.4% to 20684.82 as yen resumed its slide against the dollar despite faster than expected Q2 GDP growth. Chinese shares are falling as data showed inflation hit 17-month high of 2.8% in July: the Shanghai Composite Index is down 0.7% and Hong Kong’s Hang Seng Index is 0.5% lower. Australia’s All Ordinaries Index added 0.3% to previous session gains as Australian dollar slowed its climb against the greenback.
Brent futures prices are little changed today underpinned by expectations of more OPEC production cuts. Prices rose yesterday: October Brent crude rose 2% to $57.38 a barrel on Thursday.
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