By IFCMarkets
Technology shares lead US broad stock market
US stocks extended gains led by technology shares. The S&P 500 rose 1.2% to 2779.60 with ten of 11 main sectors closing higher. The Dow Jones industrial average added 1.6% to 25709.27. The Nasdaq composite index rose 1.2% to 7421.46. Dow and S&P 500 rose for a third straight session. The dollar weakened: 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, inched down 0.1% to 89.85. Futures indicate mixed market openings today.
The recent stock market rout was caused by concerns the central bank may turn more aggressive in raising interest rates after January jobs report showed a rise in wages. Treasury yields rose after that as investors adjusted their inflation and interest rate expectations. On Monday, St. Louis Fed President James Bullard, who is not a voting member of the Fed’s policy committee this year, said he was skeptical that bond yields would break higher from here. The main event today is Fed Chairman Powell’s testimony before the House Financial Services Committee, which will be watched closely for indications if the Fed is planning four interest rate hikes for 2018 instead of three. In economic news, the Chicago Fed national activity index came in at 0.12 in January, compared with 0.14 in the previous month. And new home sales decline accelerated to 7.8% over month in January when an increase was expected.
European stocks advance second straight session
European stocks rose for second straight session on Monday as European Central Bank President Mario Draghi said the euro-zone’s economy still needs stimulus. The British Pound turned lower against the dollar while the euro turned higher. The Stoxx Europe 600 index rose 0.5%. The DAX 30 added 0.4% to 12527.04. France’s CAC 40 closed 0.4% higher and UK’s FTSE 100 climbed 0.6% to 7289.58. Indices opened 0.2%-0.5% higher today.
Gains were led by mining shares as metals prices rose on the back of weaker dollar. In UK Jeremy Corbyn, the head of the opposition Labor Party, said that his party supports Britain creating a deal with the European Union that would give the UK full access to the EU’s single market.
Asian stocks mixed
Asian stock indices are mixed today. Nikkei posted another gain rising 1% to 22384 despite accelerated yen strengthening against the dollar. Chinese stocks reversed most of previous session’s gains: the Shanghai Composite Index is 1.1% lower and Hong Kong’s Hang Seng Index is down 0.7%. Australia’s All Ordinaries Index is 0.2% higher with Australian dollar extending gains against the US dollar.
Brent down on higher US output
Brent futures prices are edging lower today on concerns about rising US oil output. Traders are digesting the International Energy Agency Executive Director Fatih Birol’s comment the United States will overtake Russia as the world’s biggest oil producer by 2019. Prices rose Monday: April Brent crude settled 0.3% higher at $67.50 a barrel on Monday.
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
