US stocks recovery continues - 28.11.2018

Dollar strengthening accelerated despite soft housing data

US stock market recovery continued on Tuesday. The S&P 500 added 0.3% to 2628.20 led by healthcare and consumer staples shares. Dow Jones industrial average rose 0.4% to 24748.73. The Nasdaq ended 0.85 points higher at 7082.70. The dollar strengthening accelerated despite S&P/Case-Chiller 20-city Index showed home prices across the country rose in September at the slowest pace in nearly two years. 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, rose 0.3% to 97.33 but is lower currently. Futures on three main US stock indices point to higher openings today.

DAX 30 slips the most among major European indices

European stocks gave up part of previous session gains on Tuesday. Both the EUR/USD and GBP/USD continued declining but are higher currently. The Stoxx Europe 600 lost 0.3%. The German DAX 30 fell 0.4% to 11309.11. France’s CAC 40 slipped 0.2% and UK’s FTSE 100 slid 0.3% to 7016.85.

Hang Seng leads Asian indices gains

Asian stock indices are mostly in positive territory today. Nikkei gained 1% to 22177.02 helped also by yen continued slide against the dollar. Chinese stocks turned higher as investors’ hopes for US-China trade dispute settlement were buoyed by US National Economic Council Director Larry Kudlow’s comment president Trump told aides that “a deal can be made” : the Shanghai Composite Index is up 1.1% and Hong Kong’s Hang Seng index is 1.4% higher. Australia’s All Ordinaries Index however turned lower 0.1% as Australian dollar extended gains against the greenback.

HK50 breaches above MA(50) Market Overview IFC Markets chart

Brent higher

Brent futures prices recovery continues today supported by expectations of OPEC cuts next week and North Sea outage due to a pipeline shutdown for a repair. Prices fell yesterday. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 3.5 million barrels last week. January Brent fell 0.5% to $60.21 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.