By IFCMarkets
Dollar rises as trade deficit tumbles
US stock market pulled back on Wednesday. The S&P 500 slid 0.2% to 2731.62 led by energy and communication-services shares. The Dow Jones industrial average slipped 0.1% to 25390.30. Nasdaq composite index fell 0.4% to 7375.28. The dollar strengthening endured as US trade deficit fell 11.5% in November to 5-month low: 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, rose 0.3% to 96.35 and is higher currently. Futures on US stock indexes point to lower openings today.
DAX 30 leads European indexes losses
European stocks extended gains on Wednesday. Tha fall of GBP/USD and EUR/USD persisted with both pairs currently lower. The Stoxx Europe 600 closed 0.2% higher. Germany’s DAX 30 however fell 0.4% to 11324.72 weighed by report German manufacturing orders slumped in December due to drop in orders from outside euro-zone, France’s CAC 40 slipped 0.1% and UK’s FTSE 100 lost 0.1% to 7173.09.
Australian stocks rise as currency declines
Asian stock indices are mostly higher today as US and China trade talks are scheduled to continue next week in Beijing. Nikkei lost 0.6% to 20751.28 with yen little changed against the dollar. China’s and Hong Kong’s markets are closed for Lunar New Year holiday. Australia’s All Ordinaries Index on the other hand rose 1.1% as the Australian dollar continued its slide against the greenback after the governor of Australia’s central bank comment on Wednesday that lower interest rates “might be appropriate at some point”.
Brent down
Brent futures prices slipped today after data showed US crude production held at record levels. The US Energy Information Administration reported yesterday that domestic crude supplies rose by below expected 1.3 million barrels. April Brent crude rose 1.2% to $61.05 a barrel on Wednesday.
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