US dollar up as oil slumps - 4.8.2015

US stocks finished lower on Monday as energy stocks slumped and economic data underperformed. The dollar edged higher as ICE US Dollar Index, a measure of the dollar’s strength against a basket of six currencies, gained 0.2%. S&P 500 ended lower 0.3%, and energy sector led decliners with a 2% loss. The Institute for Supply Management’s manufacturing index at 52.7 against 53.5 the previous month indicated US manufacturing sector slowed expansion in July after the index grew at its fastest pace in five months in June. Personal spending grew 0.2% in June, recording the smallest gain in four months, and personal income rose 0.4%, in line with expectations. Apple fell 2.36 % after a report the company lost some smartphone market share in China in the second quarter. Tyson Foods shares fell 9.9% after the biggest US meat processor cut its earnings forecast for the year, citing export market disruptions in its beef business and high cattle costs. The trading volume was 6.5 billion shares on US exchanges, about 8% below the five-day average. Today at 14:45 CET July ISM New York index will be released. At 15:00 CET July factory orders and Investor’s Business Daily economic optimism index will be released. The tentative outlook is positive.

European stocks rose on Monday on strong corporate reports while euro traded lower against the dollar. The Stoxx Europe 600 closed up 0.8% despite heavy losses on the Athens Stock Exchange as it reopened after a five-week closure. The Athex Composite closed down 16.2%, recording a 19.1% loss year to date. Intertek Group PLC shares jumped 11.3% after the British product-testing company reported a 16.1% rise in pretax profit in the first half-year and said it expects to meet full-year forecasts. Heineken rose 4% as the Dutch brewer posted an 88% rise in first half-year profit. Commerzbank advanced 2.3% after the German lender beat profit expectations. So far this quarter 55% of companies listed on the European STOXX 600 index have beaten or met market expectations. Today at 10:00 CET July euro-zone producer price index will be released. The tentative outlook is negative. At 9:30 CET July Markit’s Construction PMI will be released in UK. The tentative outlook is positive.

Nikkei fell 0.1% today following disappointing manufacturing reports from China and US. Apple suppliers TDK Corp and Taiyo Yuden fell 5.9 % and 3.6%. Mitsubishi Corp and IHI tumbled 6.9% and 6.7% respectively, after weaker-than-expected earnings reports.

Chinese stocks are rising today after falling in three previous sessions. Chinese authorities today unveiled new measures to curtail short-selling, and Shanghai and Shenzhen exchanges introduced new rules banning traders from borrowing and repaying stocks on the same day.

Reserve Bank of Australia left the interest rate unchanged today and the Australian dollar jumped half a US cent as the central bank’s statement refrained from indicating a further decline in exchange rate was necessary.

Oil prices are edging higher today after Brent futures lost more than 4% on Monday closing below $50 a barrel on concerns over weakening global demand and lasting supply glut.

Gold prices are edging lower today after closing lower on Monday as the prospect of interest rate hike later this year weighs on demand for the safe haven metal.

Copper is rebounding today after it fell to a six-year low on Monday as economic data showed a slowdown in Chinese manufacturing.