US tariff stance softening news buoys markets - 16.11.2018

Dollar strengthens on strong sales data

US equities rebounded on Thursday supported by news US has softened its stance in US-China trade dispute and positive data. The S&P 500 rose 1.1% to 2730.20. Dow Jones industrial average gained 0.8% to 25289.27. The Nasdaq composite rallied 1.7% to 7259.03. The dollar strengthening resumed as the Census Bureau reported retail sales rose 0.8% in October, above expectations for an increase of 0.6%. 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, rose 0.1% to 97.08 but is lower currently. Futures on stock indices point to mixed openings today.

Brexit turmoil weighs on European indices

European stocks extended losses on Thursday led by bank shares on Brexit concerns after reports of resignations in British government over disagreements with Prime Minister May’s Brexit proposal. GBP/USD’s plunged over 1% while the EUR/USD continued rising and both are higher currently. The Stoxx Europe 600 index fell 1.1%. Germany’s DAX 30 slid 0.5% to 11353.67. France’s CAC 40 lost 0.7% while UK’s FTSE 100 gained 0.1% to 7038.01.

Chinese stocks up

Asian stock indices are mixed today after upturn on Wall Street overnight spurred by report US may pause its tariff upshift in January. The report was denied later by US Trade Representative’s office. Nikkei lost 0.6% to 21680.34 as yen accelerated its climb against the dollar. Chinese stocks are higher as regulators eased rules on trading, fundraising and listings to support struggling bourses: the Shanghai Composite Index is up 0.4% and Hong Kong’s Hang Seng Index is 0.2% higher. Australia’s All Ordinaries Index slipped 0.1% as Australian dollar continued climb against the greenback.

Brent higher despite US inventories build

Brent futures prices are extending gains today. Prices ended higher yesterday despite Energy Information Administration report that domestic crude supplies rose for an eighth straight week by 10.3 million barrels. Brent for January settlement closed 0.8% higher at $766.62 a barrel on Thursday.