Dollar weakening accelerated despite Dow, SP500 hitting records
US stock market rally continued on Thursday supported by more positive data and all but two Dow components. The S&P 500 added 0.8% to record high 2930.75. Dow Jones industrial average rallied 1% to first record after January at 26656. The Nasdaq composite climbed 1% to 8028.23. The dollar weakening continued at faster pace despite the report the Philadelphia Fed manufacturing index jumped more than expected in September, rising to 22.9 from 11.9 in August: 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 0.7% to 93.865 and is lower currently. Futures on stock indices point to higher openings today.
DAX 30 opens higher than other European markets
European stocks extended gains on Thursday led by banking and mining shares. The EUR/USD rally accelerated and GBP/USD joined EUR/USD’s climb after surprise UK sales gain of 0.3% in August instead of an expected 0.2% decline. It is lower currently while the EUR/USD advance continues. The Stoxx Europe 600 index rose 0.5%. Germany’s DAX 30 advanced 0.9% to 12326.48. France’s CAC 40 rallied 1.1% and UK’s FTSE 100 added 0.5% to 7367.32. Indices opened 0.2% - 0.6% higher today
Chinese stocks lead Asian indices rally
Asian stock indices are rebounding today led by Chinese shares. Nikkei ended 0.8% higher at 23869.93 helped by accelerating yen decline against the dollar. Chinese stocks are recovering from multi-day losses after Beijing pledged to accelerate infrastructure spending and issues directives to boost consumption: the Shanghai Composite Index is 2.5% higher and Hong Kong’s Hang Seng Index is up 1.7%. Australia’s All Ordinaries Index rebounded 0.4% despite Australian dollar’s persisting climb against the greenback.
Brent gains on US inventories fall
Brent futures prices are gaining today after a pullback Thursday. Prices ended lower yesterday after President Trump tweeted for the Organization of the Petroleum Exporting Countries to “get prices down now!”: Brent for November settlement closed 0.9% lower at $79.83 a barrel on Thursday.