US stocks pause despite positive reports

October 21, 2019

By IFCMarkets

Dollar weakening continues

US stocks upward momentum faltered on Friday despite positive earnings. The S&P 500 slid 0.4% to 2986.20, extending gains 0.6% for the week. Dow Jones industrial fell 1% to 26770.20 dragged by 6.8% drop in Boeing. The Nasdaq lost 0.8% to 8089.54. The dollar weakening continued at slower pace as Federal Reserve Vice Chairman Richard Clarida said the economy faced “evident” risks, while inflation remained muted: 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, fell 0.3% to 97.26 and is lower currently. Stock index futures point to mixed openings today.

CAC 40 led European indexes retreat

European stocks reversed courses on Friday on disappointing Chinese GDP report and warning by Ferench auto major Renault. Both the EUR/USD and GBP/USD continued their climb Friday with both pairs higher currently. The Stoxx Europe 600 Index lost 1.2% led by auto shares. The DAX 30 slipped 0.2% Friday to 12633.60. France’s CAC 40 fell 0.7% and UK’s FTSE 100 lost 0.4% to 7150.57 ahead of UK Parliament vote on Saturday on a new Brexit deal which was unanimously backed by European Union leaders on Thursday.

Nikkei leads Asian Indexes gains

Asian stock indices are mostly higher today. Nikkei ended 0.3% higher at 22548.90 as yen resumed its slide against the dollar following a report Japan’s exports fell 5.2% from a year earlier in September. China’s markets are rising: the Shanghai Composite Index is up 0.05% and Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index added 0.04% as the Australian dollar extended gains against the greenback.

Nikkei rising above MA(200)  10/21/2019 Market Overview IFC Markets chart

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Brent futures prices are edging higher today. Prices retreated on Friday: Brent for December settlement ended 0.8% lower at $59.42 a barrel Friday, posting 1.8% loss for the week.

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