US stocks extend losses as Apple approaches bear market - 15.11.2018

Fed seen holding steady after strong inflation data

US equities slide deepened on Wednesday as Apple approached bear territory. The S&P 500 lost 0.8% to 2701.58. The Dow Jones industrial average slid 0.8% to 25080.50. Nasdaq composite index fell 0.9% to 7136.39. The dollar weakening slowed after strong October inflation report, in line with forecasts, gave no reason to expect a change in Fed’s tightening pace: 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, slipped 0.04% to 96.97 and is lower currently. Futures on stock indices indicate higher openings today.

CAC 40 opens higher than other European indices

European stocks resumed declining on Wednesday. EUR/USD extended gains despite Italy confirming original plans for 2019 budget deficit while the GBP/USD edged lower despite Prime Minister May success to get cabinet support for her Brexit proposal negotiated with the EU. Both pairs are higher currently. The Stoxx Europe 600 lost 0.6%. Germany’s DAX 30 slid 0.5% to 11412.53. France’s CAC 40 fell 0.7% and UK’s FTSE 100 slipped 0.3% to 7033.79. Indices opened 0.2% - 0.5% higher today.

Hang Seng leads Asian indices rebound

Asian stock indices are mostly higher today on US-China trade talks progress hopes. Nikkei lost 0.2% to 21803.62 with yen little changed against the dollar. China’s stocks rebounded supported by news China had sent a written response to US demands for trade reform: the Shanghai Composite Index is up 1.4% and Hong Kong’s Hang Seng Index is 1.6% higher. Australia’s All Ordinaries Index added 0.1% while the Australian dollar climb against the greenback persisted.

Brent up despite expected US inventories build

Brent futures prices are edging higher today. Yesterday the American Petroleum Institute reported that US crude supplies rose by 8.8 million barrels last week. Prices ended higher yesterday: the January Brent crude gained 1% to $66.12 a barrel on Wednesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.