Markets recover after Huawei ban exception
|Dollar rises despite fall in existing home sales
US stock market rebounded on Tuesday after White House granted 90-day exceptions to export ban against Huawei Technologies. The S&P 500 gained 0.9% to 2864.36. Dow Jones industrial added 0.8% to 25877.33. The Nasdaq rose 1.1% to 7785.72. The dollar resumed strengthening despite a report existing home sales fell 4.4% in April from a year earlier. 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 0.1% to 98.014 and is higher currently. Futures on US stock indexes point to lower openings today.
DAX 30 outperforms European indexes
European stocks ended higher on Tuesday as market sentiment was buoyed by US delay of Huawei exports ban. Both the EUR/USD and GBP/USD continued their slide and are lower currently. The Stoxx Europe 600 ended 0.5% higher led by technology shares. The German DAX 30 rose 0.9% to 12143.47, France’s CAC 40 gained 0.5%. UK’sFTSE 100 added 0.3% to 7328.92 as Prime Minister May offered lawmakers a vote on whether to have a second Brexit referendum if they approved her withdrawal deal.
Shanghai Composite pulls back
Asian stock indices are still mixed today. Nikkei gained 0.1% to 21283.37 despite report Japanese exports declined for the fifth straight month in April while yen resumed its climb against the dollar. Chinese stocks are mixed: the Shanghai Composite Index is down 0.5% while Hong Kong’s Hang Seng index is 0.2% higher. Australia’s All Ordinaries Index added 0.2% as Australian dollar continued its decline against the greenback.
Brent down on US inventories build forecast
Brent futures prices are edging lower today. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 2.4 million barrels last week. Prices slipped yesterday. July Brent lost 0.3% to $72.18 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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