Equities gain on trade talks resumption hopes

Dmitry Lukashov IFC Markets

Dollar advances despite weak home sales data

US stock market advance accelerated on Tuesday in anticipation of China trade talks resumption next week and positive corporate reports. The S&P 500 rose 0.7% to 3005.0. Dow Jones industrial advanced 0.7% to 27349 led by 6.1% gain in Cocoa Cola. The Nasdaq gained 0.6% to 8251. The dollar strengthening accelerated despite steeper than expected 1.7% decline on month in existing home sales in June instead of forecast 0.4%: 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, gained 0.4% to 97.7 and is higher currently. Stock index futures point to lower market openings today

DAX 30 leads European indexes gains

European stocks resumed advancing on Tuesday supported by strong earnings reports. The GBP/USD and EUR/USD slump accelerated with euro lower while pound rising currently. The Stoxx Europe 600 ended 1% higher led by auto and chip maker shares. The German DAX 30 rallied 1.6% to 1249.74. France’s CAC 40 rose 0.9%. UK’s FTSE 100 advanced 0.6% to 7556.86.

Australia’s All Ordinaries Index paces Asian indexes gains

Asian stock indices extending gains today ahead of US delegation visit to Shanghai next week. Nikkei advanced 0.4% to 21709.57 despite yen inching higher against the dollar. Chinese stocks are rising: the Shanghai Composite Index is up 0.6% and Hong Kong’s Hang Seng index is 0.6% higher. Australia’s All Ordinaries Index gained 0.8% with Australian dollar’s slide against the greenback intact.

Brent down ahead of US inventories report

Brent futures prices are edging lower today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 11 million barrels last week. Prices rose yesterday: September Brent gained 0.9% to $63.83 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 weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.