Dollar fall steepens as producer prices decline
US stock market ended higher on Wednesday while technology shares pulled back as Apple shares slid after unveiling its new product lineup. Market sentiment was supported by news US offered renewed trade talks with China to stave off tariff war. The S&P 500 added 0.04% to 2888.92. The Dow Jones industrial average rose 0.1% to 25998.92. Nasdaq composite index however lost 0.2% to 7954.23. The dollar weakening accelerated as producer prices of US goods and services fell in August for the first time in a year and a half: 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, lost 0.3% to 94.80 but is rising currently. Futures indicate higher openings today.
European markets bounce back
European stocks rebounded on Wednesday. The GBP/USD joined the EUR/USD’s climb on news the UK and European Union are preparing for a special summit to sign a deal in November, but both pairs are lower currently. The Stoxx Europe 600 rose 0.5%. Germany’s DAX 30 gained 0.5% to 12032.30. France’s CAC 40 though declined 0.1% while UK’s FTSE 100climbed 0.6% to 7313.36.
Hang Seng leads Asian indices rebound
Asian stock indices recovered today after weak start to the week as investors’ risk appetite was boosted by US offer to China to restart trade talks. Nikkei ended 1.1% higher at 22836.86 as yen turned lower against the dollar. China’s stocks are rising after losses three days straight: the Shanghai Composite Index is up 1.6% and Hong Kong’s Hang Seng Index is 2.4% higher. Australia’s All Ordinaries Index however fell 0.8% as Australian dollar continued climbing against the greenback.
Brent futures prices are edging lower today after gains yesterday following the Energy Information Administration report of bigger than expected decline in US crude stockpile. Domestic crude supplies fell by 5.3 million barrels while analysts surveyed by S&P Global Platts had forecast a fall of 2.7 million barrels. Prices ended higher yesterday: November Brent crude rose 0.9% to $79.74 a barrel on Wednesday.
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