US stocks rise on further positive earnings reports - 8.8.2018

S&P 500 logs 4th straight gain

US stock market continued advancing on Tuesday. The S&P 500 gained 0.3% to 2868.45 led by energy and industrial shares. Dow Jones industrial average rose 0.5% to 25628.91. The Nasdaq composite index added 0.3% to 7883.66. The dollar strengthening halted: 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 0.2% to 95.163 and is lower currently. Stock index futures point to higher openings today.

More positive earnings reports buoyed investors’ risk appetite. The S&P 500 companies that have reported second quarter results so far have indicated earnings growth of 24% and sales gains of 9.8%, according to FactSet. In economic news the Labor Department reported there were 6.66 million job openings at the end of June, up fractionally from May’s levels and the third highest in history.

European indices open mixed

European stocks recovered Tuesday helped by positive corporate earnings reports. The British Pound continued the slide against the dollar while the euro turned higher and both are up currently. The Stoxx Europe 600 gained 0.5%. The German DAX 30 added 0.4% to 12648.09. France’s CAC 40 climbed 0.8% and UK’s FTSE 100 rose 0.7% to 7718.48. Indices opened mixed today.

Gains in US and Asian markets boosted investors’ confidence despite further weak data after German statistics agency Destatis Monday report factory orders dropped in June. German industrial production also contracted more than expected in June – 0.9% over month when 0.5% decline was expected.

Chinese stocks lead Asian indices losses

Asian stock indices are mostly lower today as US confirmation it would begin collecting 25% tariffs on an additional $16 billion worth of Chinese goods from August 23 overshadowed positive Chinese data. Nikkei slipped 0.1% to 22775.47 as the yen continued the climb against the dollar. Chinese stocks are falling despite report China's July exports rise more than expected: the Shanghai Composite Index is down 1.25% while Hong Kong’s Hang Seng ndex is 0.1% higher. Australia’s All Ordinaries Index is up 0.2% despite Australian dollar’s continuing advance against the greenback.

HK50

Brent steady on expected US crude stocks draw

Brent futures prices are steady today on expectations of falling US crude stocks ahead of sanctions on Iran. The American Petroleum Institute reported late Tuesday that US crude inventories fell 6 million barrels to 407.2 million last week. Prices ended higher yesterday: October Brent rose 0.7% to $73.75 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.