US equities halt back-to-back losses

Dmitry Lukashov IFC Markets

Dollar strengthening slowed on GDP downgrade

US stock market retreat halted on Thursday as bond yields halted their slide. The S&P 500 added 0.2% to 2788.86. The Dow Jones industrial average gained 0.2% to 25169.88. Nasdaq composite index advanced 0.3% to 7567.72. The dollar strengthening slowed as the estimate for first-quarter gross domestic product growth was lowered to 3.1%, from the initial reading of 3.2%. 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 up 0.05% to 98.17 but is lower currently. Futures on US stock indices point to lower openings today.

DAX 30 leads European indexes rebound

European stocks pullback halted on Thursday. Both EUR/USD and GBP/USD extended losses with both pairs rising currently. The Stoxx Europe 600 index added 0.4% led by media firms’ shares. Germany’s DAX 30 rose 0.5% to 11902.08. France’s CAC 40 inched up 0.2% and UK’s FTSE 100 gained 0.4% to 7218.16.

Nikkei leads Asian indexes slump

Asian stock indices are falling today after Trump’s late Thursday tweet that the US would impose a 5% tariff on all goods from Mexico until that country stops the flow of illegal immigrants into the country. The tariffs will rise to 10% on July 1 if the crisis persists, and by another 5% for every successive month, up to 25% by October 1. Nikkeifell 1.6% to 20601.19 as yen jumped against the dollar. Chinese shares are retreating after report China's manufacturing activity contracted in May: the Shanghai Composite Index is down 0.8% and Hong Kong’s Hang Seng Index is 0.8% lower. Australia’s All Ordinaries Index extended losses another 0.9% with Australian dollar turning higher against the greenback.

Brent down after smaller than expected US inventories dip

Brent futures prices are extending losses today. Prices sank yesterday after the Energy Information Administration report of a smaller than expected drop in US inventories: the US crude oil stock fell just 300 thousand barrels last week while domestic output rose by 100 thousand to record 12.3 million a day. July Brent crude dropped 3.7% to $66.87 a barrel on Thursday.

BRENT falls below MA(200) 05/31/2019 Market Overview IFC Markets chart

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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.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

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XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.