Dow closes at record high while SP500 slips - 3.10.2018

Dollar strengthens while vehicle sales drop

US equities ended marginally lower on Tuesday while the Dow Jones closed at new record high. The S&P 500 slipped 0.04% to 2923.43. Dow Jones industrials logged the fourth consecutive gain rising 0.5% to 26773.94, the fourteenth record close of 2018 . The Nasdaq composite index slid 0.5% to 7999.55. The dollar strengthening accelerated despite report US new vehicle sales fell in September compared to the same period a year ago: 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 0.2% to 95.465 but is lower currently. Futures on stock indices point to higher openings today.

News Italy’s deficit would fall faster buoys euro

European stocks pulled back on Tuesday led by Greek and Italian shares on euro-zone fiscal policy and budgetary concerns. The GBP/USD joined the EUR/USD’s slide which was dragged further by a comment from the ruling Lega party lawmaker Italy might be better off outside euro-zone. The Stoxx Europe 600 lost 0.5%. The German DAX 30 slid 0.4% to 12287.58. France’s CAC 40 dropped 0.7% and UK’s FTSE 100 slipped 0.3% to 7474.55. Markets opened flat to 0.3% higher today.

Euro got a support from Prime Minister Giuseppe Conte reaffirming the country’s commitment to the euro, and fresh reports said Italy will cut its budget deficit at a faster pace than expected, reducing the deficit to 2% of gross domestic product by 2020 from the earlier announced 2.4%. Data showing the UK construction sector grew at the slowest pace in six months weighed on the Pound. UK Prime Minister May is due to speak at the Conservative party conference today.

NIKKEI lower on automaker shares declines

Asian stock indices are mixed today in lower volume trading with markets in China closed till October 8 for National Day holidays. Nikkei ended 0.7% lower at 24110.96 led by automaker shares despite resumed yen slide against the dollar. Hong Kong’s Hang Seng index is 0.2% lower. Australia’s All Ordinaries Index rebounded 0.3% helped by mining shares’ gains as gold prices hit two-week high and Australian dollar continued its slide against the greenback.

AU200 leaves uptrend channel 10/03/2018 Market Overview IFCM Markets chart

Brent edges up

Brent futures prices rally continues today. Prices slid yesterday as traders anticipated an increase in domestic crude stock with refineries down for seasonal maintenance. The American Petroleum Institute reported late Tuesday that US crude inventories rose by 907 thousand barrels to 400.9 million last week, the second straight increase. Prices ended lower yesterday: December Brent fell 0.2% to $84.80 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.