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.
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
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.