Markets rebound after Powell hints at possible cut
Dollar weakening slows on below expected orders decline
US stock market rebounded on Tuesday buoyed by Fed chair Powell comment central bank ‘ will act as appropriate to sustain the expansion’ . The S&P 500 rose 2.1% to 2803.27. Dow Jones industrial advanced 2.1% to 25332.18. The Nasdaq rallied 2.7% to 7527.12. The dollar weakening slowed as data showed US factory orders fell below expected 0.8% in April. 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, slipped 0.1% to 97.113 and is lower currently. Futures on US stock indices point to higher openings today.
DAX 30 outperforms European indexes by large margin
European stocks recovery accelerated on Tuesday led by auto maker stocks lifted by brokerage upgrades. Both the EUR/USD and GBP/USD continued their ascent and are higher currently. The Stoxx Europe 600 ended 0.7% higher. The German DAX 30 jumped 1.5% to 11971.17. France’s CAC 40 gained 0.5%. UK’s FTSE 100 added 0.4% to 7214.29. after reopening.
Nikkei leads Asian indexes gains
Asian stock indices are mostly higher today despite mixed data. Nikkei jumped 1.5% to 20776.10 with yen little changed against the dollar. Chinese stocks are mixed after Caixin report activity in China's service sector slowed sharply in May: the Shanghai Composite Index is down 0.03% while Hong Kong’s Hang Seng index is 0.3% higher. Australia’s All Ordinaries Index extended gains 0.4% despite report Australia's Q1 growth slowed to weakest in a decade with Australian dollar slowing its climb against the greenback.
Brent futures prices are edging higher today. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 3.6 million barrels last week. Prices rose yesterday: August Brent ended up 1.1% at $61.97 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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