US equities halt back-to-back losses
|Dollar strengthening slowed on GDP downgrade
US stock market retreat halted on Thursday as bond yields halted their slide. The S&P 500 added 0.2% to 2788.86. The Dow Jones industrial average gained 0.2% to 25169.88. Nasdaq composite index advanced 0.3% to 7567.72. The dollar strengthening slowed as the estimate for first-quarter gross domestic product growth was lowered to 3.1%, from the initial reading of 3.2%. 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, edged up 0.05% to 98.17 but is lower currently. Futures on US stock indices point to lower openings today.
DAX 30 leads European indexes rebound
European stocks pullback halted on Thursday. Both EUR/USD and GBP/USD extended losses with both pairs rising currently. The Stoxx Europe 600 index added 0.4% led by media firms’ shares. Germany’s DAX 30 rose 0.5% to 11902.08. France’s CAC 40 inched up 0.2% and UK’s FTSE 100 gained 0.4% to 7218.16.
Nikkei leads Asian indexes slump
Asian stock indices are falling today after Trump’s late Thursday tweet that the US would impose a 5% tariff on all goods from Mexico until that country stops the flow of illegal immigrants into the country. The tariffs will rise to 10% on July 1 if the crisis persists, and by another 5% for every successive month, up to 25% by October 1. Nikkeifell 1.6% to 20601.19 as yen jumped against the dollar. Chinese shares are retreating after report China's manufacturing activity contracted in May: the Shanghai Composite Index is down 0.8% and Hong Kong’s Hang Seng Index is 0.8% lower. Australia’s All Ordinaries Index extended losses another 0.9% with Australian dollar turning higher against the greenback.
Brent down after smaller than expected US inventories dip
Brent futures prices are extending losses today. Prices sank yesterday after the Energy Information Administration report of a smaller than expected drop in US inventories: the US crude oil stock fell just 300 thousand barrels last week while domestic output rose by 100 thousand to record 12.3 million a day. July Brent crude dropped 3.7% to $66.87 a barrel on Thursday.
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