Dollar weakens as US budget deficit doubles
US stock market extended gains on Tuesday led by technology and telecom shares. The S&P 500 added 0.4% to 2887.89.Dow Jones industrial average gained 0.4% to 25971.06. The Nasdaq composite index rose 0.6% to 7972.47. The dollar weakening persisted as the US budget deficit nearly doubled in August relative to the same period a year ago: 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, edged 0.03% lower to 95.08 but is higher currently. Futures on three main US stock indices point to higher openings today.
CAC 40 opens higher than other European indices
European stocks pulled back on Tuesday. The EUR/USD extended gains as Germany’s ZEW survey of economic expectations rose for the second straight month while the GBP/USD turned lower and both pairs are down currently. The Stoxx Europe 600 lost 0.1%. The German DAX 30 slipped 0.1% to 11970.27. France’s CAC 40 though gained 0.3% while UK’sFTSE 100 slid 0.1% to 7273.54. Indices opened 0.1% - 0.3% higher today
Asian indices retreat continues
Asian stock indices extended losses today after news China has appealed to the World Trade Organization for permission to impose sanctions against the US for Washington’s noncompliance with a ruling over US dumping duties in a 2013 dispute. Nikkei lost 0.3% to 22604.61 as yen turned higher against the dollar. Chinese stocks are falling: the Shanghai Composite Index is down 0.4% and Hong Kong’s Hang Seng index is 0.4% lower. Australia’s All Ordinaries Index fell 0.1% despite Australian dollar’s slide against the greenback.
Brent down
Brent futures prices are lower today. Prices jumped yesterday on reports US government lowered its forecasts for domestic production. And the American Petroleum Institute reported late Tuesday that US crude inventories fell by 8.6 million barrels to 395.9 million last week. Prices ended sharply higher yesterday: November Brent rose 2.2% to $79.06 a barrel 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.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.