Stocks fall and dollar weakens after dovish Fed
US stock market continued retreating on Wednesday led by bank shares after dovish Fed decision. The S&P 500 slid 0.3% to 2824.23. The Dow Jones industrial average fell 0.6% to 25745.67. Nasdaq composite index however added 0.1% to 7728.97. The dollar weakening accelerated as Federal Reserve cut the projection of the number of interest rate hikes expected this year to zero from the two forecast in December. 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, fell 0.6% to 95.94 and is lower currently. Futures on US stock indexes point to lower openings today.
DAX 30 leads European indices losses
European stocks turned lower on Wednesday with all sectors down. The EUR/USD accelerated its climb while the GBP/USD turned lower as the UK officially requested a delay to its departure from the EU. Both pairs are currently higher. The Stoxx Europe 600 fell 0.9% led by auto makers shares. Germany’s DAX 30 dropped 1.6% to 11603.89, France’s CAC 40 lost 0.8% and UK’s FTSE 100 slid 0.5% to 7291.01.
Shanghai Composite leads Asian indices higher
Asian stock indices are mostly higher today after dovish Fed decision. Nikkei added 0.2% to 21608.92 despite yen’s continued climb against the dollar. China’s stocks are mixed: the Shanghai Composite Index is up 0.4% while Hong Kong’s Hang Seng Index is 0.7% lower. Australia’s All Ordinaries Index inched up 0.03% despite the Australian dollar continued gain against the greenback.
Brent rises boosted by more US inventories drop
Brent futures prices are extending gains today. Prices rose yesterday after data showed US crude stockpiles fell by 9.6 million barrels last week with gasoline supplies dropping further. May Brent crude rose 1.3% to $68.50 a barrel on Wednesday.
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EUR/USD faces a minor resistance near at 1.0750
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US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.