US stocks drop amid weak data
US stock market retreat continued on Tuesday with weak data providing little support for market sentiment as investors wonder when the US can return to usual business. Uncertainty about how long the shutdown may last increased as President Trump warned that a “very, very painful” two weeks lied ahead for the country. The S&P 500 lost 4.4% to 2470.50. The Dow Jones industrial average fell 4.4% to 20943.51. Nasdaq slumped 4.4% to 7360.58. The dollar weakening halted as the Institute for Supply Management reported US manufacturing index fell to 49.1 in March from 50.1 in February when a drop to 44.9 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, rebounded 0.5% to 99.52 but is lower currently. Futures point to higher market openings today.
CAC 40 led European indexes slump
European stocks extended losses on Wednesday with risk appetite getting little boost from weak economic data. The GBP/USD joined EUR/USD’s accelerated sliding yesterday, with Pound reversing higher currently. The Stoxx Europe 600 ended down 3% led by travel/leisure shares as euro zone manufacturing purchasing managers’ index fell again in March, hitting a 92-month low of 44.5. Germany’s DAX 30 lost 3.9% to 9544.75. France’s CAC 40 dropped 4.3% while UK’s FTSE 100 slumped 3.8% to 5454.57.
Australia’s All Ordinaries Index leads Asian indexes slump
Asian stock indices are mixed today after another down session on Wall Street overnight following President Trump’s warning as many as 240,000 Americans might die of the coronavirus. Nikkei fell 1.4% to 117818.72 despite resumed yen sliding against the dollar. Markets in China are rising: Shanghai Composite Index is 1.7% higher while Hong Kong’s Hang Seng Index is up 0.6%. Australia’s All Ordinaries Index however slumped 2.0% as Australian dollar resumed climbing against the greenback.
Brent jumps after Trump says Russia-Saudi disagreement can be resolved
Brent futures prices are rebounding today after president Trump said about Russia and Saudi Arabia disagreement on output reduction “I have confidence in both that they’ll be able to work it out”. Prices fell yesterday as the Energy Information Administration reported US crude oil inventories rose by bigger than expected 13.8 million barrels last week, tenth weekly rise in a row: June Brent dropped 6.1% to $24.74 on Wednesday.
Gold edges up on weaker Dollar
Gold prices are edging higher today after a retreat on Wednesday. June gold price of an ounce of gold slipped 0.3% to $1591.40 on Wednesday.
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