By IFCMarkets
Dollar strengthening continues as tariffs kick in
US stock indexes markets will reopen today after Labor Day holiday. Futures on US stock indices point to lower opening today. Equities ended the month lower. The S&P 500 finished August 1.8% lower. Dow Jones industrial lost 1.7%. The Nasdaq composite retreated 2.6%. The dollar strengthening run was intact yesterday as 15% tariffs on $112 billion of Chinese goods went into effect on Sunday, as did retaliatory Chinese tariffs on US products. 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 0.2% to 99.03 and is higher currently.
FTSE 100 outperforms European indexes
European stocks advance continued on Monday on positive data. Both GBP/USD and EUR/USD maintained their decline yesterday with both pairs lower currently. The Stoxx Europe 600 index ended 0.3% higher led by financial shares as data showed euro-zone manufacturing activity contraction slowed in July. The DAX 30 gained 0.1% to 11953.78. France’s CAC 40 advanced 0.2% and UK’s FTSE 100 gained 1% to 7281.94 as main opposition Labour party planned to publish its legislation blocking the possibility of Britain leaving the European Union without a deal on Tuesday.
Shanghai Composite up while other Asian indexes slip
Asian stock indices are mostly falling today after reports US and China are struggling to agree on what to discuss in trade talks this month. Nikkei inched up 0.2% to 20625.16 as the yen slide against the dollar continued. Markets in China are mixed: the Shanghai Composite Index is up 0.1% while Hong Kong’s Hang Seng Index is 0.3% lower. Australia’s All Ordinaries Index extended losses 0.1% as Australian dollar turned higher against the greenback.
Brent lower
Brent futures prices are edging lower today. Prices fell yesterday on global growth concerns as US and China reciprocal new tariff came into force Sunday: November Brent crude closed 2.9% lower at $58.66 a barrel on Monday.
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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.
