US stocks retreat after surprise ISM decline

Dmitry Lukashov IFC Markets

Dollar weakens as US manufacturing sector shrinks

US stock indexes pulled back on Tuesday as ISM indicator showed US manufacturing sector shrank in August. The S&P 500 slid 0.7% to 2906.27. Dow Jones industrial lost 1.1% to 26118.02. The Nasdaq retreated 1.1% to 7874.15. The dollar strengthening reversed as the Institute for Supply Management’s purchasing manager’s index declined to 49.1 last month from 51.2 in July. Readings below 50 indicate contraction: 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, slipped 0.1% to 98.96 and is lower currently. Stock index futures point to higher openings today.

CAC 40 leads European indexes losses

European stocks pulled back on Tuesday as British Prime Minister Johnson lost his majority in parliament as lawmakers sought to block a no-deal Brexit. The GBP/USD turned higher yesterday as did the EUR/USD with both pairs higher currently. The Stoxx Europe 600 ended 0.4% lower. The German DAX 30 slid 0.4% to 11910.86. France’s CAC 40 fell 0.5%. UK’s FTSE 100 slipped 0.2% to 7268.19.

Hang Seng leads Asian indexes gains

Asian stock indices are mostly rising today after report China’s services sector expansion picked up in August. Nikkei gained 0.1% to 20649.14 as yen resumed its slide against the dollar. Chinese stocks are advancing after data showed Caixin services purchasing managers index rose to 52.1 in August from 51.6 in July: the Shanghai Composite Index is up 0.9% and Hong Kong’s Hang Seng index jumped 3.6% following reports controversial extradition bill could be formally withdrawn. Australia’s All Ordinaries Index slid another 0.3% as Australian dollar’s move higher against the greenback continued.

Brent up

Brent futures prices are recovering today after report China’s services sector growth accelerated in August. Prices fell yesterday: November Brent lost 2.1% to $59.25 a barrel on Tuesday.

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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 turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.