Dollar strengthens as main US stock indices rise
US stock market recovered on Tuesday from previous day losses despite China’s announcement it will levy tariffs of 5% to 10% on $60 billion worth of US products that will take effect September 24. The S&P 500 added 0.5% to 2904.31. Dow Jones industrial average gained 0.7% to 26246.96. The Nasdaq composite index rose 0.8% to 7956.11. The dollar strengthened: 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, edged 1% higher to 94.578 but is lower currently. Futures on stock indices indicate higher openings today.
FTSE 100 opens higher than other European markets
European stocks crawl higher continued on Tuesday. Both the EUR/USD and the GBP/USD turned lower but both pairs are rising currently. The Stoxx Europe 600 added 0.1%. The German DAX 30 rose 0.5% to 12157.67. France’s CAC 40 gained 0.3% while UK’s FTSE 100 slid 0.03% to 7300.23. Indices opened flat to 0.1% higher today
NIKKEI leads Asian indices gains
Asian stock indices extended gains today despite China’s retaliation to President Trump’s order to impose tariffs on additional $200 billion of Chinese imports going into effect next week. Nikkei jumped 1.6% to 23804.65 with yen little changed against the dollar as Bank of Japan vowed to keep rates very low for an ‘extended period’. Chinese stocks are firmly higher: the Shanghai Composite Index is up 1.2% and Hong Kong’s Hang Seng index is 1.4% higher. Australia’s All Ordinaries Index added 0.5% despite Australian dollar’s climb against the greenback.
Brent edges up
Brent futures prices are extending gains today. Prices rose yesterday after comments by Saudi Arabian officials indicated Saudi Arabia, the world’s largest oil exporter, was comfortable with prices climbing above $80 a barrel. And the American Petroleum Institute reported late Tuesday that US crude inventories rose by 1.249 million barrels last week. Prices ended higher yesterday: November Brent rose 1.3% to $79.03 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.