By IFCMarkets
US stocks rise closing off session highs
US stock indices ended higher Monday paring earlier gains on signs that trade tensions between the US and China may be easing. The S&P 500 gained 0.3% to 2613.16 led by healthcare and technology stocks. Six of 11 main sectors ended higher. The Dow Jones industrial added 0.2% to 23979.10. The Nasdaq composite index rose 0.5% to 6950.34. The dollar weakening continued: 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 0.3% to 89.811. Stock indices futures indicate higher openings today.
Trade war concerns subsided on hopes the US and China may negotiate a settlement to tariff disputes after President Trump’s comments. President tweeted “China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property”. Uncertainty about possibility of trade war has caused severe market volatility recently which will likely persist until the trade dispute is settled one way or another.
European indices recover
European stock markets rebounded Monday on sings of subsiding US-China tariffs dispute tensions. The euro andBritish Pound extended gains against the dollar, with euro turning lower since and Pound continuing the rise. The Stoxx Europe 600 index added 0.1%. The DAX 30 rose 0.2%, France’s CAC 40 gained 0.1% and UK’s FTSE 100 inched up 0.2% to 7194.75. Indices opened 0.2% – 0.6% higher today.
In economic news, German Trade Balance surplus rose to below expected 18.4 billion in February from 17.4 billion the previous month as both exports and imports fell more than expected.
Xi’s speech lifts Asian indices
Asian stock indices are higher today after Chinese President Xi Jinping promised to lower import tariffs on products including cars. Xi said at the Boao Forum China would raise the foreign ownership limit in the automobile sector “as soon as possible” and promised foreign companies greater access to China’s financial sector. Nikkei rose 0.5% to 21794.32 helped also by a yen slide against the dollar. Chinese stocks are higher: the Shanghai Composite Index is up 1.7% and Hong Kong’s Hang Seng Index is 1.7% higher. Australia’s All Ordinaries Index is up 0.8% with Australian dollar accelerating gains against the US dollar.
Brent rallies
Brent futures prices are extending gains today. Prices rallied yesterday on falling US-China trade tensions: June Brent crude settled 2.3% higher at $68.65 a barrel on Monday.
Market Analysis provided by IFCMarkets
Note:
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.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
