By IFCMarkets
Dollar weakens after dovish Fed minutes
US stock market advanced fourth straight session on Wednesday as US-China talks wrapped by China pledging to buy “substantial” amount of US goods. The S&P 500 gained 0.4% to 2584.96. The Dow Jones industrial average advanced 0.4% to 23879.12. Nasdaq composite index rose 0.9% to 6957.08. The dollar weakened sharply after Fed minutes showed ‘many’ officials thought they could be ‘patient’ on interest rates going forward. 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 0.8% to 95.136 but is higher currently. Stock index futures point to lower openings today.
European indices gain despite weak German data
European stock markets extended gains on Wednesday despite negative German data. Both GBP/USD and EUR/USD erased previous session losses with euro currently higher while Pound retreating against the dollar. The Stoxx Europe 600 closed 0.5% higher. Germany’s DAX 30 rose 0.8% to 10893.32 despite a decline in German exports in November, France’s CAC 40 gained 0.8% and UK’s FTSE 100 added 0.7% to 6906.63.
Asian indices mixed as China’s inflation slows
Asian stock indices are mixed today after US-China two-day trade talks concluded in Beijing. Nikkei fell 1.3% to 20163.80 as yen climb against the dollar continued. China’s stocks are falling after report China inflation slowed in December: the Shanghai Composite Index is down 0.4% while Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index extended gains 0.3% as the Australian dollar climb against the greenback endured.
Brent down despite US crude stocks dip
Brent futures prices are lower today. Prices rallied yesterday buoyed by reports the US crude stockpile fell 1.7 million barrels last week and December output from major oil producers dropped: February Brent crude rallied 4.6% to $61.44 a barrel on Wednesday.
Market Analysis provided by IFCMarkets
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
