Dollar weakens as Trump calls for deeper rate cuts
US stock indexes pulled back on Tuesday despite president Trump’s confirmation Tuesday that he was looking at tax cuts, including cutting payroll taxes. The S&P 500 fell 0.8% to 2900.51. Dow Jones industrial lost 0.7% to 25962.44. The Nasdaq retreated 0.7% to 7948.56. The dollar strengthening reversed as president Trump said the Federal Reserve should consider deeper cuts to key interest rates, of around 1%: 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 0.2% to 98.15 but is higher currently. Stock index futures point to higher market openings today.
FTSE 100 leads European indexes retreat
European stocks recovery faltered on Tuesday as Italian Prime Minister Giuseppe Conte announced his resignation from the government. Both the EUR/USD and GBP/USD turned higher yesterday and both pairs are lower currently. The Stoxx Europe 600 ended 0.7% lower as Italy’s coalition government between anti-immigration Lega party and the anti-establishment Five Star Movement (M5S) unraveled after Matteo Salvini, deputy prime minister and leader of Lega party, called for the vote and a new general election last week. The German DAX 30 lost 0.6% to 11651.18. France’s CAC 40 slid 0.5%. UK’s FTSE 100 fell 0.9% to 7125.
Australia’s All Ordinaries Index leads Asian indexes retreat
Asian stock indices are mostly in negative territory today. Nikkei lost 0.3% to 20618.57 despite resumed yen slide against the dollar. Chinese stocks are mixed: the Shanghai Composite Index is up 0.03% while Hong Kong’s Hang Seng index is 0.04% lower. Australia’s All Ordinaries Index gave up most of previous session gains falling 0.9% despite Australian dollar’s move lower against the greenback.
Brent up
Brent futures prices are rising today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 3.5 million barrels last week. Prices rose yesterday: October Brent gained 0.5% to $60.03 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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