By IFCMarkets
Nasdaq snaps four-day winning streak
US stock market pulled back on Thursday as technology stocks reversed previous day gains. Dow Jones industrial average however rose 0.4% to 25241.41. The S&P 500 slid 0.1% to 2770.37. The Nasdaq composite fell 0.7% to 7635. The dollar weakening slowed: 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, fell 0.2% to 93.407 but is rebounding currently. Stock index futures indicate lower openings today.
Stocks reversed earlier gains after technology shares sold off. Traders are cautious ahead of Federal Reserve meeting next week when the central bank is expected to hike rates while stock valuations are at historic highs. Treasury yields declined as traders sold off technology shares. Economic news was positive: initial jobless claims fell slightly, remaining near a 50-year low.
Bank shares limit European indices losses
European stock indices extended losses on Thursday as bank shares capped losses on policy makers comments European Central Bank will discuss ending the stimulus program. Both the euro and British Pound continued rebound against the dollar with Pound up currently while euro is lower. The Stoxx Europe 600 index lost 0.2%. Germany’s DAX 30slipped 0.14% to 12811.05. France’s CAC 40 fell 0.2% and UK’s FTSE 100 slid 0.1% to 7704.40. Indices opened 0.3% – 1.2% lower today.
Bank stocks ended 0.3% higher after ECB Chief Economist Peter Praet mentioned on Wednesday the central bank may use next week’s policy meeting to discuss the end of its bond-buying program. Disappointing economic news didn’t help market sentiment either: German manufacturing orders dropped 2.5% unexpectedly in April following 0.9% decline in March.
Chinese stocks lead Asian indices retreat
Asian stock indices are mostly lower today. Nikkei slid 0.6% to 22694.50 as yen continued climbing against the dollar. Chinese stocks are lower despite report China’s exports rose 12.6% in May: the Shanghai Composite Index is 1.4% lower and Hong Kong’s Hang Seng Index is down 2%. Australia’s All Ordinaries Index is down 0.2% despite Australian dollar continued slide against the greenback.
Brent slips
Brent futures prices retreating today after a rebound Thursday on Iran, Venezuela output concerns. They ended higher yesterday as traders expect the Iran crude exports will drop as US sanctions come into effect, and oil shipments from Venezuela are nearly a month behind the schedule. Brent for August settlement closed 2.6% higher at $77.32 a barrel on Thursday.
Market Analysis provided by IFCMarkets
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.
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.
