Dollar gains on trade deficit narrowing
US stock market pulled back on Wednesday as bond yields continued falling while demand for safer government debt remained strong. The S&P 500 slid 0.5% to 2805.37. The Dow Jones industrial average slipped 0.1% to 25625.59. Nasdaq composite index fell 0.6% to 7643.38. The dollar strengthening persisted as US trade deficit narrowed in January to a five-month low of $51.1 billion after $59.9 billion in December. 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 96.96 but is lower currently. Futures on US stock indexes point to lower openings today.
Brexit vote still a drag on European Indices
European stocks ended marginally higher on Wednesday. Both the EUR/USD and GBP/USD continued sliding but are currently higher. The Stoxx Europe 600 inched up 0.02%. Germany’s DAX 30 slipped 2.1 points to 11419.04, France’s CAC 40 lost 0.1% and UK’s FTSE 100 slipped 0.02% to 7194.19 as British parliament voted on eight different Wednesday but none received the majority support.
Nikkei leads Asian indices losses
Asian stock indices are still mixed today. Nikkei lost 1.6% to 21033.76 as yen accelerated its climb against the dollar. China’s stocks are mixed after US trade negotiators told progress had been made in trade talks with China in all areas under discussion: the Shanghai Composite Index is down 0.9% while Hong Kong’s Hang Seng Index is 0.2% higher. Australia’s All Ordinaries Index extended gains 0.7% despite the Australian dollar resumed gain against the greenback.
Brent slide continues
Brent futures prices are extending losses today. Prices fell yesterday after data showed US crude stockpiles rose by 2.8 million barrels last week with gasoline supplies dropping 2.9 million barrels. May Brent crude slid 0.2% to $67.83 a barrel on Wednesday.