Dollar strengthens as Bullard says trade war can’t guide Fed policy
US stock indexes recovered on Tuesday as China’s central bank stabilized its currency with a fix Tuesday at 6.9683 yuan per dollar. The S&P 500 rebounded 1.3% to 2881.77. Dow Jones industrial advanced 1.2% to 26029.52. The Nasdaq rose 1.4% to 7833.27. The dollar strengthening resumed as St. Louis Federal Reserve President James Bullard said the Fed “can’t realistically move monetary policy in a tit-for-tat trade war”: 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, gained 0.2% to 97.58 but is higher currently. Stock index futures point to lower market openings today
DAX 30 leads European indexes losses
European stocks retreat continued on Tuesday despite China’s move to stabilize yuan below 7 level. The EUR/USD declined while GBP/USD inched up yesterday and both pairs are moving in verse directions currently. The Stoxx Europe 600 ended 0.4% lower. The German DAX 30 dropped 0.8% to 11567.96 despite 2.5% increase in new industrial orders month-on-month in June, though they were still down by 3.6% on the year. France’s CAC 40 slipped 0.1%. UK’s FTSE 100 lost 0.7% to 7117.69.
Australia’s All Ordinaries Index rebounded while other Asian indexes retreat
Asian stock indices are mixed today as the People’s Bank of China set the daily fix for the yuan below 7 and a bit weaker than expected. Nikkei lost 0.3% to 20516.56 as yen climb against the dollar resumed. Chinese stocks are falling: the Shanghai Composite Index is down 0.1% and Hong Kong’s Hang Seng index is 0.2% lower. Australia’s All Ordinaries Index rebounded 0.6% as Australian dollar’s slide against the greenback accelerated.
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Brent futures prices are steady today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 3.4 million barrels last week. Prices however fell yesterday: October Brent lost 1.4% to $58.94 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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