Global stocks rally on strong data - 2.4.2019

Dollar gains on strong ISM report

US stock market rallied on Monday on fresh data. The S&P 500 advanced 1.1% to 2865. Dow Jones industrial rallied 1.2% to 26236 led by Caterpillar and Boeing. The Nasdaq composite jumped 1.2% to 7820. The dollar strengthening accelerated as the Institute for Supply Management reported a stronger than expected manufacturing index for March indicating the activity in the sector accelerated: 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 97.354 but is lower currently. Futures on US stock indexes point to lower openings today.

DAX 30 outperforms European indices

European stocks advance continued on Monday. The EUR/USD continued sliding while GBP/USD turned higher with both pairs reversing currently. The Stoxx Europe 600 index gained 1.2% led by miners and technology. The DAX 30 jumped 1.4% to 11681.99 despite the downgrade of German Manufacturing PMI’s final reading for March. France’s CAC 40 advanced 1% and UK’s FTSE 100 added 0.5% to 7317 as Markit reported UK’s manufacturing sector expansion accelerated in March.

Australian stocks lead Asian indices gains as RBA leaves rates unchanged

Asian stock indices are mixed today as the difference between three-month US Treasury bills and 10-year notes further moved into positive territory with 10-year US Treasury yield edging to 2.475 percent . Nikkei ended 3.72 points lower at 21505.31 as yen turned higher against the dollar. Markets in China are higher: the Shanghai Composite Index is up 0.2% and Hong Kong’s Hang Seng Index is 0.2% higher. Australia’s All Ordinaries Index extended gains 0.4% as the Reserve Bank of Australia held interest rates steady at 1.5% while Australian dollar accelerated its slide against the greenback.

Brent down

Brent futures prices are lower today still supported by OPEC supply cuts. Prices rallied yesterday after reports output from the Organization of the Petroleum Exporting Countries fell for a fourth month in April: June Brent crude rose 2.1% to $69.01 a barrel on Monday.