By IFCMarkets
Dollar strengthening accelerates on strong productivity data
US stock market extended losses on Thursday following Fed chair Powell’s comments cutting rates was not the central bank’s planned path for interest rates. The S&P 500 slipped 0.2% to 2917.52. The Dow Jones industrial average slid 0.5% to 26307.79. Nasdaq composite index lost 0.2% to 8036.77. The dollar strengthening accelerated as data showed above expected productivity growth in the first quarter of 2019 and similar performance for factory orders in March, while initial jobless claims for unemployment benefits rose more than expected. 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 0.2% to 97.83 and is higher currently. Futures on US stock indexes point to higher openings today.
DAX 30 manages uptick while European indices dip
European stocks pullback continued on Thursday with mixed corporate reports and weak data of little support. GBP/USD joined EUR/USD’s slide as bank of England kept rates unchanged. Both pairs are currently lower. The Stoxx Europe 600 index slid 0.6% as factory activity in the euro zone contracted for a third month in April. Germany’s DAX 30 however ended marginally higher edging up 0.01% to 12345.42. France’s CAC 40 fell 0.9% and UK’s FTSE 100 lost 0.5% to 7451.31.
Australia’s All Ordinaries Index down while Hang Seng climbs more
Asian stock indices are mixed today. Markets in Japan and mainland China are closed for a holiday. Yen turned higher against the dollar. Hong Kong’s Hang Seng Index is 0.5% higher. Australia’s All Ordinaries Index extended losses 0.04% despite Australian dollar continued slide against the greenback as Australian home building approvals fell sharply.
Brent down after US crude output increase
Brent futures prices are extending losses today. Prices fell yesterday on reports US crude production edged up by 100,000 barrels to a record 12.3 million barrels a day: July Brent crude lost 2% to $70.75 a barrel on Thursday.
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