US stocks retreat as Fed stays pat

May 2, 2019

By IFCMarkets

Dollar strengthening resumed as rates kept in 2.25-2.50 range

US stock market pulled back on Wednesday as Federal Reserve held policy steady. The S&P 500 fell 0.8% to 2923.73. The Dow Jones industrial average lost 0.6% to 26430.14. Nasdaq composite index slid 0.6% to 8049.64. The dollar strengthening resumed despite mixed data indicating Supply Management manufacturing index for April came in at 52.8%, below expectations while Markit’s manufacturing purchasing managers index came in at 52.6, above forecasts: 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 0.1% to 97.62 and is higher currently. Futures on US stock indexes point to higher openings today.

Futures indicate lower openings for European indexes

European stocks indicate lower openings today for markets which remained closed for Labor Day. The EUR/USD turned lower while GBP/USD continued climbing and both pairs are maintaining their dynamics currently. UK’s FTSE 100 lost 0.4% to 7385.26 on Wednesday.

GB100 falls below support line 05/02/2019 Market Overview IFC Markets chart

Australia’s All Ordinaries Index down while Hang Seng climbs after reopening

Asian stock indices are mixed today. Japan’s markets are closed and will reopen next Tuesday while yen resumed its slide against the dollar. Mainland China’s markets are closed , Hong Kong’s Hang Seng Index is 0.8% higher. Australia’s All Ordinaries Index pulled back 0.6% as Australian dollar turned higher against the greenback.


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Brent down after US crude inventories build

Brent futures prices are inching lower today. Prices edged up yesterday despite the report US gasoline stocks rose above expected 9.9 million barrels while crude stockpiles rose by 0.9 million last week. July Brent crude added 0.2% to $72.18 a barrel on Wednesday.

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