By IFCMarkets
Dow logs a record high while Nasdaq drops
US stocks edged lower on Wednesday on technology stocks selloff. The dollar continued strengthening on GDP upward revision and upbeat Beige Book: 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 0.1% to 93.258. The S&P 500 slipped 0.04% to 2626.07 as gains in telecom were offset by losses in the technology shares. The Dow Jones industrial average rose 0.4% to fresh record 23940.68. Nasdaq composite index meanwhile fell 1.3% to 6867.36.
The upgrade of the Q3 GDP to 3.3% from 3.0% first estimate confirmed the US economy accelerated from 3.1% growth recorded in the second quarter. Upbeat Beige Book indicated strengthening in inflation pressures. Recent improving economic data point to growing likelihood of a third rate hike in December. In other economic news pending home sales jumped 3.5% in October, though still 0.6% lower than a year ago.
Bank stocks support European markets rally
European stocks rally continued on Wednesday led by banking shares. Both the euro and British Pound advanced against the dollar. The Stoxx Europe 600 closed higher 0.3%. Germany’s DAX 30 added less than 0.1% settling at 13061.87. France’s CAC 40 gained 0.1% while UK’s FTSE 100 fell 0.9% to 7393.56. Indices opened mixed today.
Banks rose on improving outlook expectations after Federal Reserve Chair nominee Powell said during a Senate confirmation hearing that he supported easing regulations for the financial industry. Looser US regulations will benefit also many European banks doing business in the US. In economic news economic sentiment in the euro-zone continued to rise in November, hitting the highest level since October 2000.
Technology shares drag Asian indices
Asian stock indices are mixed as technology shares tumbled following the selloff on Wall Street overnight. Nikkei rose 0.6% to 22724.96 as yen continued the decline against the dollar. Chinese stocks are down: the Shanghai Composite Index is down 0.6% and Hong Kong’s Hang Seng Index is 1.5% lower. Australia’s All Ordinaries Index is 0.7% lower as Australian dollar inched higher against the greenback.
OPEC meets in Vienna
Oil futures prices are edging higher today in thin trading. Investors expect OPEC and major producers will extend an ongoing output cut agreement at a meeting today after the current agreement expires next March but the duration of the extension is uncertain. Prices ended lower yesterday despite the US Energy Information Administration report domestic crude supplies fell by 3.4 million barrels but gasoline and distillate stockpiles both rose more than anticipated. January Brent crude fell 0.8% to $63.11 a barrel on Wednesday.
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