Tech lead US stocks as trade war concerns subside
US stock indexes extended gains on Wednesday as Beijing announced it exempted some US products from retaliatory import tariffs. The S&P 500 gained 0.7% to 3000.93. The Dow Jones industrial average advanced 0.9% to 27137.04. Nasdaq rose 1.1% to 8169.67. The dollar strengthening accelerated after data showing wholesale price growth rose year-over-year at a 1.8% rate, after a 1.7% advance in July: 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 0.3% to 98.63 and is higher currently. Stock index futures point to higher openings today.
FTSE 100 paces European indexes gains
European stocks accelerated their rebound on Wednesday as China exempted 16 types of US products from retaliatory tariffs. Both GBP/USD and EUR/USD turned lower yesterday with both pairs sliding currently ahead of the European Central Bank (ECB)meeting today. The Stoxx Europe 600 gained 0.8% led by basic resources shares. Germany’s DAX 30 advanced 0.7% to 12359.07. France’s CAC 40 gained 0.4% and UK’s FTSE 100 rose 1.0% to 7336.03. The ECB is expected to announce new stimulus measures for euro-zone suffering from chronic low inflation.
Hang Seng falls while Asian indexes gain
Asian stock indices are extending gains today after President Donald Trump tweeted he will delay implementing tariff hikes from 25% to 30% on $250 billion of Chinese goods for two weeks as a “gesture of good will.” Nikkei gained 0.8% to 21759.61 as yen continued sliding against the dollar. Chinese stocks are mixed: the Shanghai Composite Index is up 0.75% while Hong Kong’s Hang Seng Index is 0.25% lower. Australia’s All Ordinaries Index added another 0.25% despite resumed climb of Australian dollar against the greenback.
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Brent falls despite drop in US crude inventories
Brent futures prices are extending losses today. Prices fell yesterday despite the Energy Information Administration report US crude inventories dropped by 6.9 million barrels, while gasoline inventories fell by 0.7 million barrels. Prices fell after reports President Donald Trump is considering easing sanctions on Iran: November Brent crude dropped 2.5% to $60.81 a barrel on Wednesday.
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