US equities rebound on positive earnings

May 17, 2018

By IFCMarkets

Upbeat retailers reports lift US market

US stocks rebounded on Wednesday led by materials shares. The S&P 500 rose 0.4% to 2722.46, with nine of 11 main sectors finishing higher. The Dow Jones added 0.3% to 24768.93. Nasdaq composite index gained 0.6% to 7398.30.The dollar strengthening 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, edged up 0.1% to 93.29 and is rising currently. Stock indices futures point to lower openings today.

Stock market advanced on upbeat retailers reports. Treasury yields continued rising. Economic news were mixed: industrial production rose at above-expected rate of 0.7% in April, while construction of new houses dropped 3.7% to an annual rate of 1.29 million last month.

European stocks rise on upbeat earnings

European stocks extended gains on Wednesday . The British Pound turned higher against the dollar while eurocontinued its slide and both are down currently. The Stoxx Europe 600 gained 0.2%. Germany’s DAX 30 added 0.2% to 12996.33. France’s CAC 40 rose 0.3% and UK’s FTSE 100 gained 0.2% to 7734.20. Markets opened mixed today.

Euro slide continued after reports the 5 Star Movement and League coalition is considering radical plans that would boost Italy’s deficit. In economic news inflation in euro-zone in April was confirmed at 1.2% in March after gaining 1.3% in February.

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Asian indices retreat

Asian stock indices are mostly lower today as the United States and China start trade talks. Nikkei ended 0.5% higher at 22838.37 as yen slide against the dollar accelerated. China’s stocks are lower despite a report China foreign direct investment rose 1.9% over year in April to $9.09 billion: the Shanghai Composite Index is 0.5% lower and Hong Kong’sHang Seng Index is down 0.3%. Australia’s All Ordinaries Index is down 0.2% as Australian dollar gains against the greenback continued despite report unemployment rose more than expected in April.


Brent rising

Brent futures prices are gaining today. Prices rose yesterday as the US Energy Information Administration reported that domestic crude supplies fell by 1.4 million barrels last week. July Brent crude jumped 1.1% to $79.28 a barrel on Wednesday.

Market Analysis provided by IFCMarkets

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