Stocks edge higher after Fed bolsters rate-cut hopes | IFCM Hong Kong
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Stocks edge higher after Fed bolsters rate-cut hopes - 20.6.2019

Dollar weakened as Fed lowered its forecast for inflation

US stock market extended gains on Wednesday as Federal Reserve left interest rates unchanged while indicating would “act as appropriate to sustain the expansion”. The S&P 500 gained 0.3% to 2926.46. The Dow Jones industrial average added 0.2% to 26504. Nasdaq composite index rose 0.4% to 7987.32. The dollar weakened as the Fed lowered its forecast for PCE inflation in 2019 to 1.5% from 1.8%, below its 2% target. 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 0.4% to 97.23 and is lower currently. Futures on US stock indices point to higher openings today.

CAC 40 rose while most European indexes fell

European stocks edged up on Wednesday. The EUR/USD joined GBP/USD’s continuing climb with both pairs higher currently. The Stoxx Europe 600 inched up 0.05%. Germany’s DAX 30 slid 0.2% to 12308.53. France’s CAC 40 however rose 0.2% while UK’s FTSE 100 edged down 0.5% to 7403.54 as data showed the inflation rate slowed in May as consumer prices rose at annual rate of 2% after 2.1% increase in April.

Shanghai Composite leads Asian indexes gains

Asian stock indices are extending gains today after US Trade Representative Lighthizer said he plans to meet his Chinese counterpart ahead of the G-20 summit next week. Nikkei rose 0.6% to 21462.86 as the yen continued its advance against the dollar at previous session pace. Chinese stocks are rising : the Shanghai Composite Index is up 2.4% and Hong Kong’s Hang Seng Index is 1.2% higher. Australia’s All Ordinaries Index rose another 0.6% despite Australian dollar accelerated its continuing climb against the greenback.

Brent rises after news a US drone was shot down by an Iranian missile

Brent futures prices are rising today after reports a US military drone was shot down by an Iranian missile. Prices fell yesterday despite the Energy Information Administration report US crude inventories fell by 3.1 million barrels last week while gasoline inventories dropped by 1.7 million. August Brent crude lost 0.5% to $61.82 a barrel on Wednesday.

BRENT testing downward channel   06/20/2019 Market Overview IFC Markets chart

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