US stocks dip despite upbeat data
|US market retreats on Turkey crisis impact concerns
US stock market pulled back on Wednesday as worries Turkey financial crisis may spread weighed on market sentiment. The S&P 500 fell 0.8% to 2818.37, led by energy shares. The Dow Jones industrial average lost 0.5% to 25162.41. Nasdaqcomposite index dropped 1.2% to 7774.12. The dollar strengthened helped by report of rising retail sales and productivity: 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, inched up 0.04% to 96.678 but is falling currently. Stock index futures indicate higher openings today.
Trade dispute concerns outweighed any boost to optimism after upbeat data pointed to expectations of strong economic performance in third quarter too. Retail sales rose 0.5% in July, above expectations. Productivity in the second quarter rose 2.9%, the highest rate in more than three years. Output in the second quarter was up 4.8%. And the Empire State manufacturing index rose to 25.6 in August, when a reading of 20 was expected.
DAX 30 opens higher than main European indices
European stocks ended firmly lower on Wednesday led by commodity shares. The GBP/USD continued the slide while EUR/USD ended flat and both are rising currently. The Stoxx Europe 600 lost 1.4%. Germany’s DAX 30 fell 1.6% to 12163.01. France’s CAC 40 slumped 2.1% and UK’s FTSE 100 dropped 1.5% to 7497.87. Indices opened 0.2 % - 0.3% higher today.
Turkey remained in focus as it raised its tariffs on US cars, alcohol, tobacco, cosmetics, rice and coal by the same aggregate amount that US doubling of tariffs on Turkish metals exports to the United States last week amounted. Turkish lira rebounded after Qatar reportedly pledged to invest $15 billion in Turkey following a meeting between Turkish President Recep Tayyip Erodgan and Qatar’s Sheikh Temim bin Hamed Al Sani.
Asian indices selloff slows as China agrees to trade talks with US
Asian stock indices are mostly in negative territory today despite some relief after news China has agreed to take part in trade negotiations with the US later this month. Nikkei ended 0.1% lower at 22192.04 erasing earlier losses helped also by cotninued yen slide against the dollar. China’s stocks are lower: the Shanghai Composite Index is down 0.6% and Hong Kong’s Hang Seng Index is 1% lower. Australia’s All Ordinaries Index slipped 0.01% as Australian dollar turned higher against the greenback.
Brent recovering
Brent futures prices are rebounding today. Prices fell yesterday after the Energy Information Administration reported bigger than expected buildup in crude stockpile: US domestic crude supplies rose by 6.8 million barrels last week when 3.7 million barrels increase was forecast. Prices ended sharply lower yesterday: October Brent crude fell 2.4% to $70.76 a barrel on Wednesday.
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