Dow snaps six-session winning streak

Dmitry Lukashov IFC Markets

Dollar weakening resumed on slowing wholesale inflation

US stock market ended marginally lower on Tuesday as China’s foreign ministry said it would respond firmly if the US insisted on escalating its standoff with China. The S&P 500 slid 0.03% to 2885.72. Dow Jones industrial edged down 0.05% to 26048.51. The Nasdaq slipped 0.01% to 7822.57. The dollar weakening resumed as data showed the increase in wholesale prices over the past year slowed to 1.8% from 2.2% in April. 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, slipped 0.1% to 96.71 and is lower currently. Futures on US stock indices point to lower openings today.

DAX 30 outperforms European indexes

European stocks recovery accelerated on Tuesday led by basic resources shares. Both the EUR/USD andGBP/USD turned higher and are climbing currently. The Stoxx Europe 600 ended 0.7% higher. The German DAX 30 rose 0.9% to 12155.81. France’s CAC 40 gained 0.5%. UK’s FTSE 100 added 0.3% to 7398.45 as data showed wages in the three months to April beat forecasts while the jobless rate held at its lowest rate since 1975.

Hang Seng leads Asian indexes retreat

Asian stock indices are mostly lower today after President Trump’s comment he had “no interest” in a deal unless China agrees to terms it had previously agreed upon . Nikkei lost 0.4% to 21129.72 with yen resuming its climb against the dollar. Chinese stocks are falling despite report China's consumer inflation hit 15-month high in May: the Shanghai Composite Index is down 0.6% while Hong Kong’s Hang Seng index is 2% lower. Australia’s All Ordinaries Index pulled back 0.04% with Australian dollar accelerating its decline against the greenback.

Brent down on expected US inventories build

Brent futures prices are edging lower today. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 4.9 million barrels last week. Prices fell yesterday. Prices of August Brent ended down 1.5% at $61.35 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.