US stocks rebound as Turkish lira stabilizes - 15.8.2018

S&P 500 halts 4-session skid

US stock market rebounded on Tuesday. The S&P 500 gained 0.6% to 2839.96. Dow Jones industrial average rose 0.5% to 25299.92. The Nasdaq composite index climbed 0.7% to 7821.93. The dollar strengthening resumed: 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, gained 0.4% to 96.637 and is higher currently. Stock index futures indicate lower openings today.

Positive economic data also supported market sentiment: the National Federation of Independent Business’ small-business optimism index rose 0.7 points in July to 107.9, its second-highest level in history since 1983. The annual rate of increase in cost of imported goods jumped to 4.8%, the highest level since February 2012. And import prices, excluding fuel, rose 1.3%. over year in July.

DAX 30 opens higher than main European indices

European stocks ended virtually unchanged on Tuesday with investors concerned about the course of Turkey’s currency crisis. Both GBP/USD and EUR/USD resumed their slide and both are down currently. The Stoxx Europe 600 gained less than a point to 384.92. The German DAX 30 ended flat at 12358.87. France’s CAC 40 slid 0.2% and UK’s FTSE 100 lost 0.7% to 7718.48. Markets opened 0.1 % - 0.4% higher today.

In Europe too positive economic reports soothed concerns about Turkey’s lira crisis impact on EU economy: Germany’s economy accelerated in the second quarter, growing 0.5% after upwardly revised 0.4% expansion in the first three months of 2018. And unemployment rate in the UK in the three months through June declined to 4%, its lowest level since the mid-1970s.

Chinese shares lead Asian indices losses

Asian stock indices are mostly lower today. Nikkei pulled back 0.7% to 22204.22 despite continued yen slide against the dollar. Chinese stocks are falling despite 383bln yuan injection by People’s Bank of China: the Shanghai Composite Index is down 2.6% and Hong Kong’s Hang Seng ndex is 1.6% lower as China's commerce ministry said a US decision to subsidize renewable energy firms and impose tariffs on imported products has seriously distorted the global market and harmed China's interests. Australia’s All Ordinaries Index is up however 0.5% helped by Australian dollar’s continuing slide against the greenback.

HK50

Brent lower on expected US crude stocks build

Brent futures prices are down today on expectations of rising US crude stocks ahead of sanctions on Iran. The American Petroleum Institute reported late Tuesday that US crude inventories rose 3.66 million barrels to last week. Prices ended lower yesterday: October Brent slipped 0.2% to $72.46 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.