Positive data boost investor risk appetite - 1.9.2017

Nasdaq closes at record high

US stock indices added to previous session’s gains on Thursday as additional positive data boosted market sentiment. The dollar inched lower: 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, fell 0.3% to 92.554. Dow Jones industrial average climbed 0.3% closing at 21952.35 with shares of Du Pont and United Health leading the advancers. The S&P 500 rose 0.6% settling at 2471.64 led by health care stocks, with nine out of 11 main sectors finishing higher. The Nasdaq index gained 1% closing at record high 6428.66 on back of tow-day rally in biotechnology stocks.

The positive momentum in stock market was also supported by data. Consumer spending rose 0.3% last month, helped by higher incomes and low inflation. The pace of inflation, meanwhile, was little changed in July, up 0.1%. Data pointed to continued economic growth. Today at 14:30 CET August jobs report will be released, the outlook is positive for dollar.

Mining shares lead European indices higher

European stock indices continued advancing led by basic resources shares on strong China manufacturing report Thursday. Both euro and British Pound inched higher against the dollar. The Stoxx Europe 600 closed 0.8% higher. Germany’s DAX 30 gained 0.4% closing at 12055.84. France’s CAC 40 added 0.6% and UK’s FTSE 100 jumped 1% to 7430.62. Indices opened 0.1% - 0.2% higher today.

Continued positive trend in euro-zone inflation supported the single currency. The rise in consumer prices accelerated to 1.5% in August from 1.3% in July, above an expected 1.4% pace. Core inflation was at unchanged at 1.2% in August, in line with expectations.

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Asian markets higher

Asian stock indices are mostly higher today with investor confidence buoyed by data pointing to continued strength of US economy. Nikkei gained 0.2% to 19691.47 supported by weaker yen against the dollar. Chinese stocks are rising after the private Caixin manufacturing purchasing managers index showed the manufacturing activity expanded in August at the fastest pace in six months: the Shanghai Composite Index is up 0.2% while Hong Kong’s Hang Seng Index is 0.1% lower. Australia’s All Ordinaries Index is 02% higher as the Australian dollar inches lower against the greenback.

Oil lower

Oil futures prices are retracing lower after sharp rise on Thursday. Prices jumped yesterday as the US Energy Department announced the emergency release of a total of 1 million barrels of oil from the Strategic Petroleum Reserve to be delivered to a refinery in Louisiana amid an effort to help boost gasoline supplies. Official reports indicated 13.5% of oil production in the Gulf of Mexico was shut down on Thursday. Brent for October settlement jumped 3% to end the session at $52.38 a barrel on the London-based ICE Futures exchange on Thursday.