SP500, Dow rise on strong sales report

August 16, 2019

By IFCMarkets

Dollar strengthens despite decline in industrial production

US stock indexes ended marginally higher on Thursday on better than expected sales data. The S&P 500 gained 0.3% to 2840.60. The Dow Jones industrial average recovered 0.4% to 25579.39 buoyed by 6.1% gain in Walmart on better than expected earnings. Nasdaq composite index however slipped 0.1% to 7766.62. The dollar strengthening continued as Census Bureau reported retail sales rose above expected 0.7% over month in July while industrial production fell 0.2% when an 0.1% increase was forecast: 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 98.16 but is lower currently. Stock index futures point to higher market openings today

FTSE 100 paces European indexes retreat

European stocks extended losses on Thursday led by auto shares. EUR/USD continued declining while GBP/USD turned higher yesterday with both pairs moving in previous session’s directions currently. The Stoxx Europe 600 index ended 0.3% lower. Germany’s DAX 30 lost 0.7% to 11412.67. France’s CAC 40 slid 0.3% and UK’s FTSE 100 fell 1.1% to 7067.01.

GB100 falls below MA(200)   08/16/2019 Market Overview IFC Markets chart

Hang Seng leads Asian indexes gains

Asian stock indices are mostly higher today as Beijing said it will take “necessary countermeasures” if US enforces 10% tariffs on Chinese goods from September 1. Nikkei recovered 0.1% to 20418.81 as yen’s slide against the dollar despite continued. Chinese shares are rising in light of comments by Chinese officials they “hope the U.S. will meet China halfway”: the Shanghai Composite Index is up 0.3% and Hong Kong’s Hang Seng Index is 0.8% higher. Australia’s All Ordinaries Index added 0.03% to previous session losses as Australian dollar slowed its climb against the greenback.

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Brent futures prices are edging higher today underpinned by easing of global slowdown concerns after strong US retail sales report. Prices fell yesterday: October Brent crude lost 2.1% to $58.23 a barrel on Thursday.

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