By IFCMarkets
Nasdaq books second record in a row
US stock market advance continued Tuesday with technology shares in the lead still. The S&P 500 ended less than 0.1% higher at 2748.79. Dow Jones industrial average however slipped less than 0.1% to 24799.98 led by Goldman Sachs down 0.7%. The Nasdaq composite index logged second back to back record climbing 0.4% to 7637.86. The dollar weakening continued: 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 0.2% to 94.774 and is down currently. Stock index futures indicate higher openings today.
Technology shares tracked Netflix and Apple gains, with Apple hitting fresh record as the company announced new software upgrades for all its products. Financial shares fell as Treasury yields declined. Economic news were positive: the Institute for Supply Management services index’s increase to 58.6 in May from 56.8 in April was bigger than expected, with Markit’s composite PMI performance also exceeding expectations.
FTSE 100 leads major European indices losses
European stock indices pulled back Tuesday led by Italian stocks as Italy’s Prime Minister Giuseppe Conte’s first speech unsettled investors. The British Pound joined euro’s climb against the dollar and both currencies are rising currently. The Stoxx Europe 600 fell 0.3%. The German DAX 30 rose 0.1% to 12787.13. France’s CAC 40 lost 0.2% and UK’s FTSE 100tumbled 0.7% to 7686.80. Indices opened 0.1% – 0.3% higher today.
Italian stocks fell after Italian Prime Minister Giuseppe Conte mentioned the new coalition government wants to cut corporate and individual taxes while increasing welfare spending. Euro advanced on report the European Central Bank would use its June 14 policy meeting to discuss an exit from its quantitative easing program. Pound turned higher after Markit reported UK’s services sector PMI’s rise to 54 in May from 52.8 in April was steeper than expected. In other economic news the final May reading on euro-zone services activity was downgraded to 53.8 from 53.9 in April.
Hang Seng leads Asian indices advance
Asian stock indices are mostly higher today. Nikkei gained 0.4% to 22625.73 as the yen accelerated slide against the dollar. Chinese stocks are higher: the Shanghai Composite Index is up 0.1% and Hong Kong’s Hang Seng Index is 1% higher. Australia’s All Ordinaries Index is up 0.5% with Australian dollar turning higher against the greenback as Australia’s economy recorded stronger than expected first quarter growth.
Brent rising
Brent futures prices are gaining today after reports Venezuela may halt some crude oil exports as traders expect a drop in US crude oil inventories. The American Petroleum Institute reported late Tuesday that US crude inventories fell by 2 million barrels. Prices ended higher yesterday: August Brent gained 0.1% to $75.38 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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