Dollar strengthening resumes despite expectations of a rate cut
US stock indexes pulled back on Monday as oil prices jumped after a Saturday attack on Saudi Arabia’s oil-production facilities. The S&P 500 finished 0.3% lower at 2997.96. Dow Jones industrial dropped 0.5% to 27076.82. The Nasdaq composite fell 0.3% to 8153.54. The dollar strengthening resumed despite expectations of a rate cut at the Fed two-day meeting which starts today: 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, jumped 0.5% to 98.64 and is higher currently. Stock index futures point to mixed openings today.
CAC 40 posts biggest loss among European indexes
European stocks turned lower on Monday as tensions rose in Middle East after the weekend drone attack on Saudi Arabia oil refinery. Both GBP/USD and EUR/USD turned lower yesterday with both pairs down currently. The Stoxx Europe 600 index ended 0.4% lower led by consumer goods shares. The DAX 30 lost 0.7% to 12380.31. France’s CAC 40 dropped 0.9% and UK’s FTSE 100 slid 0.6% to 7321.41 as European Commission President Jean-Claude Juncker said it was now up to the British government to offer a solution to the Brexit impasse.
Chinese stocks fall while other Asian indexes gain
Asian stock indices are mixed today. Nikkei rose 0.1% to 22001.32 as President Trump told US and Japan were ready to sign a limited trade deal and the yen slide against the dollar continued. Markets in China are falling after report Monday industrial production growth was lower than expected in August: the Shanghai Composite Index is down 1.7% and Hong Kong’s Hang Seng Index is 1.6% lower. Australia’s All Ordinaries Index extended gains 0.3% as Australian dollar slide against the greenback accelerated.
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Brent gains after drone attacks on Saudi Arabia
Brent futures prices are extending gains today after sharp gains Monday following Saturday’s attack on Saudi oil facilities that halved the kingdom’s oil output. Prices jumped yesterday: November Brent crude closed 14.6% higher at $69.05 a barrel on Monday.
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