President Trump’s comments buoy markets

Dmitry Lukashov IFC Markets

Dollar gains on import prices rise

US stock market rebounded on Tuesday after President Trump said he had not decided whether to impose tariffs on an additional $300 billion of Chinese goods, and it should be clear in “three or four weeks” if the last trip of US delegation to China to discuss the trade deal was successful. The S&P 500 gained 0.8% to 2834.41. Dow Jonesindustrial added 0.8% to 25532.05. The Nasdaq rose 1.1% to 7734.49. The dollar snapped four-session slide as small business optimism rose to a four-month high in April while US import prices rose below expected 0.2% in April. 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, rose 0.2% to 97.513 but is lower currently. Futures on US stock indexes point to lower openings today.

DJI edges up to MA(50) 05/15/2019 Market Overview IFC Markets chart

CAC40 outperforms European indexes

European stocks rebounded on Tuesday as market sentiment was buoyed by late Monday comments by President Trump. Both the EUR/USD and GBP/USD continued their slide and are lower currently. The Stoxx Europe 600 ended 0.9% higher led by technology shares. The German DAX 30 added 1.0% to 11991.62, France’s CAC 40 jumped 1.5%. UK’s FTSE 100 rose 1.1% to 7241.60.

Shanghai Composite leads Asian Indexes rebound

Asian stock indices recovered most of their previous session losses today. Nikkei gained 0.6% to 21188.56 as yen decline against the dollar continued. Chinese stocks turned higher after President Trump comment calling the tariff war a “little squabble” while the US started the legal process of imposing 25% tariffs on another $325 billion of Chinese goods: the Shanghai Composite Index is up 1.9% and Hong Kong’s Hang Seng index is 0.4% higher. Australia’s All Ordinaries Index turned 0.7% higher as Australian dollar accelerated its decline against the greenback.

Brent rising on Middle East tensions

Brent futures prices are edging higher today. Prices rose yesterday as Saudi Arabia reported drones attacked its oil pipeline and energy infrastructure. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 8.6 million barrels last week while gasoline inventories grew by 0.567 million. Prices ended higher yesterday. July Brent rose 1.4% to $71.24 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.

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 extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.