US stocks trend lower amid renewed trade-war jitters

Haresh Menghani FXStreet

Major US equity indices opened firmly lower on Wednesday and snapped five consecutive days of winning streak amid escalating US-China trade war fears.

The Trump administrations, late-Tuesday, said that it would assess 10% tariffs on a further $200 billion worth of Chinese imports and revived fears of a full-blown trade war between the world's two largest economies, resulting into a global risk-aversion trade.

However, expectations of strong profit growth from the upcoming second-quarter earnings reports, signalling a strong economy, might provide a floor for equity prices, at least for the time being.

On the economic data front, the June producer price index rose 0.3% m/m, with the yearly rate jumping a whopping 3.4% to mark its highest rise since Nov. 2011. The hotter than expected PPI print, along with the trade issue should continue to cap any up-move ahead of Thursday’s consumer inflation figures.

During the opening hour of trade, the Dow Jones Industrial Average was down over 140-points to 24,778 and the broader S&P 500 Index slipped around 14-points to 2,779. Meanwhile, tech-heavy Nasdaq Composite Index retreated nearly 45-points and is now fast approaching the 7,700 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

Gold struggles for direction and clings to its daily gains around the key $5,000 mark per troy ounce on Thursday. The precious metal sticks to the bid bias amid reignited geopolitical tensions in the Middle East and despite marked gains in the US Dollar and rising US Treasury yields across the curve.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.