US stocks advance on dovish Fed minutes - 11.4.2019

Dollar falls as core CPI declines

US stock market recovered most of previous session loses on Wednesday after the minutes from the Federal Reserve’s March meeting indicated the central bank is in wait and see mode with regards to resuming interest rate hikes. The S&P 500 gained 0.4% to 2888.21. The Dow Jones industrial average edged up 0.03% to 26157.16. Nasdaq composite index rose 0.7% to 7964.24. The dollar weakening accelerated as inflation report showed core CPI declined to a 13-month low of 2% in March, from 2.1%. 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 0.1% to 97.10 and is lower currently. Futures on US stock indexes point to higher openings today.

DAX 30 outperforms European indexes

European stocks ended higher on Wednesday after the European Central Bank left interest rates unchanged as it maintained the outlook of no hikes till the end of 2019. The GBP/USD joined EUR/USD’s climb and both are currently higher. The Stoxx Europe 600 gained 0.3% led by retail shares. Germany’s DAX 30 rose 0.5% to 11905.91, France’s CAC 40 advanced 0.3% while UK’s FTSE 100 slipped 0.05% to 7421.91 as EU leaders offered Britain a Brexit deadline extension until October 31.

EU50 above MA(200) 04/11/2019 Market Overview IFC Markets chart

Nikkei gains while Asian indices fall

Asian stock indices are mostly down today. Nikkei however managed to add 0.1% to 21711.38 helped by yen resumed slide against the dollar. China’s stocks are lower despite a report consumer inflation accelerated in March: the Shanghai Composite Index is down 1.6% and Hong Kong’s Hang Seng Index is 0.7% lower. Australia’s All Ordinaries Index gave back previous session gain closing 0.4% lower despite the Australian dollar’s turn lower against the greenback.

Brent slides

Brent futures prices are retreating today. Prices rose yesterday after data showed US gasoline stocks fell by 7.7 million barrels while crude stockpiles jumped by 7 million last week. June Brent crude gained 1.6% to $71.73 a barrel on Wednesday.