Dollar strengthens as US goods trade deficit narrows
US stock indexes advance accelerated on Friday after reports China’s commerce ministry official said Beijing wouldn’t immediately respond to the latest round of tariff increases announced by President Donald Trump last Friday. The S&P 500 gained 1.27% to 2924.58. The Dow Jones industrial average rose 1.25% to 26362.25. Nasdaq composite index advanced 1.5% to 7973.39. The dollar strengthening proceeded at previous session pace supported by report the July goods trade deficit shrunk to below expected $72.3 billion from $74.2 billion a month earlier: 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 98.43 and is higher currently. Stock index futures point to higher market openings today.
CAC 40 paces European indexes rebound
European stocks bounced back on Thursday after China said it wanted to resolve the trade dispute with a “calm attitude.” Both EUR/USD and GBP/USD continued declining yesterday with both pairs moving lower currently . The Stoxx Europe 600 index ended 1.0% higher. Germany’s DAX 30 advanced 1.2% to 11838.88 while reports indicated inflation in six German states slowed in August. France’s CAC 40 rose 1.5% and UK’s FTSE 100 gained 0.9% to 7184.32.
Australia’s All Ordinaries Index leads Asian indexes gains
Asian stock indices are still mixed today after a Beijing statement Thursday that China’s additional levies on US imports are adequate. Nikkei rebounded 1.2% to 20704.37 with yen little changed against the dollar. Chinese shares are falling: the Shanghai Composite Index is down 0.2% and Hong Kong’s Hang Seng Index is 0.1% lower. Australia’s All Ordinaries Index extended gains 1.5% as Australian dollar continued its slide against the greenback.
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Brent futures prices are edging lower today underpinned by easing of global slowdown concerns after easing of US-China trade dispute escalation fears. Prices advanced yesterday: October Brent crude rose 1% to $61.08 a barrel on Thursday.
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