US stocks rise fourth session as 2-day talks wrap - 10.1.2019

Dollar weakens after dovish Fed minutes

US stock market advanced fourth straight session on Wednesday as US-China talks wrapped by China pledging to buy “substantial” amount of US goods. The S&P 500 gained 0.4% to 2584.96. The Dow Jones industrial average advanced 0.4% to 23879.12. Nasdaq composite index rose 0.9% to 6957.08. The dollar weakened sharply after Fed minutes showed ‘many’ officials thought they could be ‘patient’ on interest rates going forward. 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 0.8% to 95.136 but is higher currently. Stock index futures point to lower openings today.

European indices gain despite weak German data

European stock markets extended gains on Wednesday despite negative German data. Both GBP/USD and EUR/USD erased previous session losses with euro currently higher while Pound retreating against the dollar. The Stoxx Europe 600 closed 0.5% higher. Germany’s DAX 30 rose 0.8% to 10893.32 despite a decline in German exports in November, France’s CAC 40 gained 0.8% and UK’s FTSE 100 added 0.7% to 6906.63.

Asian indices mixed as China’s inflation slows

Asian stock indices are mixed today after US-China two-day trade talks concluded in Beijing. Nikkei fell 1.3% to 20163.80 as yen climb against the dollar continued. China’s stocks are falling after report China inflation slowed in December: the Shanghai Composite Index is down 0.4% while Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index extended gains 0.3% as the Australian dollar climb against the greenback endured.

Brent down despite US crude stocks dip

Brent futures prices are lower today. Prices rallied yesterday buoyed by reports the US crude stockpile fell 1.7 million barrels last week and December output from major oil producers dropped: February Brent crude rallied 4.6% to $61.44 a barrel on Wednesday.