Stocks end modestly lower as investors weigh US-China deal

Dmitry Lukashov IFC Markets

Dollar weakening slows

US stocks pulled back on Monday as investors weighed the phase one trade deal with China. While US postponed a planned tariff increase on $250 billion in Chinese imports set to take effect today in exchange for Chinese promises to buy $40 to $50 billion in American agricultural products annually, no decision has been made on a planned new 15% tariff set to go into effect on December 15 on about $160 billion in annual imports from China.The S&P 500 finished 0.1% lower at 2966.15. Dow Jones industrial lost 0.1% to 26787.30. The Nasdaq composite slid 0.1% to 8048.65. The dollar weakening halted: 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 0.1% to 98.43 but is lower currently. Stock index futures point to higher openings ahead of opening bank quarterly reports of third earnings season today.

DAX posts smallest loss among European indexes

European stocks ended three-session win streak on Monday. Both EUR/USD and GBP/USD turned lower yesterday with both gaining currently. The Stoxx Europe 600 index ended 0.5% lower led by basic resources shares. The DAX 30 slipped 0.2% to 12486.56. France’s CAC 40 slid 0.4% and UK’s FTSE 100 lost 0.5% to 7213.45 after reports the European Union wanted more concessions from Prime Minister Boris Johnson and indicated a full Brexit agreement was unlikely this week.

Nikkei gains while Chinese shares slide

Asian stock indices are mixed today. Nikkei rose 1.9% to 22207.21 after reopening with yen little changed against the dollar. Markets in China are falling despite report consumer inflation hit near six year high while wholesale prices declined at the fastest pace in more than three years in September: the Shanghai Composite Index is down 0.5% and Hong Kong’s Hang Seng Index is 0.02% lower. Australia’s All Ordinaries Index turned 0.1% higher as Australian dollar continued its slide against the greenback.

Brent down

Brent futures prices are extending losses today. Prices fell yesterday: December Brent crude closed 1.9% lower at $59.35 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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