Nasdaq closes in correction territory

Dmitry Lukashov IFC Markets

Dollar weakened on softer than expected IMS report

US stock market closed mixed on Monday as technology stocks tumbled on news US has started scrutiny of technology leaders for possible violations of antitrust law. The S&P 500 lost 0.3% to 2744.45. Dow Jones industrial however managed to close 0.02% higher at 24819.78. The Nasdaq composite tumbled 1.6% to 7333.02. Technology stocks have been under pressure on US-China trade war concerns and dropped after news Justice Department is preparing to investigate Google parent Alphabet, Apple and large tech companies. Treasury yields declined after the Institute for Supply Management’s manufacturing PMI came in lower than expected for May. The dollar continued weakening yesterday: 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 0.5% to 97.22 and is lower currently. Futures on US stock indices point to higher openings today.

CAC 40 top performer among European indexes

European stocks rebounded on Monday. Both EUR/USD and GBP/USD continued rising and are higher currently. The Stoxx Europe 600 index added 0.3% led by chemicals and basic resources shares. The DAX 30 gained 0.6% to 11792.81. France’s CAC 40 rose 0.7%. UK’s FTSE 100 advanced 0.3% to 7184.80 despite Markit report UK manufacturing activity entered into contraction territory in May.

Australia’s All Ordinaries Index gains while Asian indexes retreat endures

Asian stock indices are mostly falling today. Nikkei closed marginally lower down 0.01% to 20408.54 with yen climb against the dollar intact. Markets in China are retreating as White House blamed China for backtracking on promises that had been made: the Shanghai Composite Index is down 1.1% and Hong Kong’s Hang Seng Index is 0.8% lower. Australia’s All Ordinaries Index rebounded 0.2% despite Australian dollar’s continued climbing against the greenback as the Reserve Bank of Australia cut its benchmark rate 0.25 percentage point to 1.25%.

Brent gaining

Brent futures prices are edging higher today. Prices fell yesterday: August Brent crude lost 1.2% to $61.28 a barrel on Monday.

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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.

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