Markets advance on US renewed trade talks offer

Dmitry Lukashov IFC Markets

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 slips

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.

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold holds gains near $5,000 as China's gold buying drives demand

Gold price clings to the latest uptick near $5,000 in Asian trading on Monday. The precious metal holds its recovery amid a weaker US Dollar and rising demand from the Chinese central bank. The delayed release of the US employment report for January will be in the spotlight later this week.

Bitcoin Weekly Forecast: The worst may be behind us

Bitcoin price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

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.