Fed on track for December rate hike - 23.11.2017

US stocks slip while Nasdaq logs a record high

US stocks edged lower on Wednesday in thin trading ahead of Thanksgiving holiday with the Federal Reserve on track for a rate hike in December. The dollar weakened as the minutes raised the likelihood of slowing the pace of rate increases in 2018: 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, plunged 0.7% to 93.258. The S&P 500 slipped 0.1% to 2597.08 led by financial shares. The Dow Jones industrial average lost 0.3% to 23526.18. Nasdaq composite index meanwhile rose 0.1% to fresh record 6867.36.

Minutes showed some Fed officials said “there was some likelihood that inflation might remain below 2% for longer than they currently expected.” Sluggish inflation raises doubts the central bank will implement the three rate hikes policy makers penciled in for 2018 in the last dot plot reflecting their expectations of Fed funds rate. However the minutes confirmed eh Fed was on track for a near term rate hike. Economic data were mixed: US durable goods orders fell 1.2% in October, its second drop this year, when a 0.5% was forecast. US initial weekly jobless claims fell 13 thousand to 239 thousand. The University of Michigan said its consumer sentiment index fell to a reading of 98.5 from October’s 100.7, still the second-best reading in 13 years. US markets are closed today for Thanksgiving holiday.

European stocks slip as euro advances

European stocks pulled back on Wednesday. Both the euro and British Pound advanced against the dollar. The Stoxx Europe 600 closed lower 0.3%. Germany’s DAX 30 slumped 1.2% settling at 13015.04. France’s CAC 40 slipped 0.3% while UK’s FTSE 100 added 0.1% to 7419.02. Indices opened 0.2%-0.5% lower today.

Chinese stocks fall on tighter financial oversight concerns

Asian stock indices are mostly lower. Japanese markets are closed for a national holiday. Chinese stocks are falling as central government tightened regulation for small online lenders: the Shanghai Composite Index is down 2.3% and Hong Kong’s Hang Seng Index is 1.2% lower. Australia’s All Ordinaries Index is flat 0while Australian dollar inched higher against the greenback.

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Oil lower despite US crude inventory draw

Oil futures prices are edging lower today. Prices ended higher yesterday on shutdown of the 590,000 barrel per day Keystone pipeline from Canada to the United States. The US Energy Information Administration report domestic crude supplies fell by 1.9 million barrels last week also supported oil prices. January Brent crude rose 1.2% to $63.32 a barrel on Wednesday.