US stocks extend gains on growing trade optimism

Dmitry Lukashov IFC Markets

Dollar strengthened despite downtick in sales

US stock market added to previous session gains on Wednesday despite soft data. The S&P 500 gained 0.6% to 2850.96. The Dow Jones industrial average added 0.5% to 25648.02. Nasdaq composite index rose 1.1% to 7822.15. The dollar strengthening continued despite data showing retail sales declined 0.2% last month after strong 1.7% growth in March: 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, added 0.04% to 97.56 but is lower currently. Futures on US stock indexes point to lower openings today.

DAX 30 outperforms European indexes while Germany returned to economic growth

European stocks extended gains on Wednesday on news that President Donald Trump plans to delay the implementation of auto tariffs on European car imports by up to six months. Both the EUR/USD and GBP/USDcontinued sliding with euro higher currently while Pound falls against the dollar. The Stoxx Europe 600 added 0.4% led by auto shares. Germany’s DAX 30 rose 0.9% to 12099.57 as German economy recorded 0.4% growth in the first quarter following stagnant fourth quarter in 2018. France’s CAC 40 gained 0.6%. UK’s FTSE 100 advanced 0.8% to 7296.95.

DE30 bounces off MA(50) 05/16/2019 Market Overview IFC Markets chart

Shanghai Composite still ahead of Asian Indexes

Asian stock indices are mostly rising today. Nikkei turned 0.6% lower to 21062.98 as yen climb against the dollar accelerated. Chinese stocks are gaining despite reports President Trump signed an order that would ban telecom equipment from countries considered “foreign adversaries” which will apply to China’s Huawei Technologies too: the Shanghai Composite Index is up 1% and Hong Kong’s Hang Seng Index is 0.2% higher. Australia’s All Ordinaries Index extended gains 0.7% as Australian dollar continued sliding against the greenback at a previous session’s pace.

Brent rises despite US crude inventories build

Brent futures prices are extending gains today. Prices rose yesterday despite the report US crude stockpiles rose 5.4 million barrels while gasoline stocks declined by 1.1 million last week. July Brent crude added 0.7% to $71.77 a barrel on Wednesday.

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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 weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.