SP500 snaps three-session losing stretch on trade optimism - 26.9.2019

Dollar jumped on strong home sales data

US stocks resumed advancing on Wednesday after President Donald Trump said that a US-China trade deal could happen “sooner than you think.” The S&P 500 rose 0.6% to 2984.87. The Dow Jones industrial average advanced 0.6% to 26970.70. Nasdaq rallied 1.05% to 8077.38. The dollar strengthening resumed after data showing US new home sales rose 18% over-year in August to a seasonally adjusted annual rate of 713,000, just below the 12-year high set in June: 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 0.7% to 99.01 but is lower currently. Stock index futures point to mixed openings today.

FTSE 100 loses less than other European indexes

European stocks pulled back on Wednesday led by technology shares. Both GBP/USD and EUR/USD turned lower yesterday with both edging higher currently. The Stoxx Europe 600 lost 0.7%. Germany’s DAX 30 slid 0.6% to 12234.18. France’s CAC 40 fell 0.8% and UK’s FTSE 100 slipped 0.01% to 7289.99 as Boris Johnson said he disagreed with the Supreme Court decision and would take the UK out of the EU by the October 31 deadline.

Nikkei gains after Trump and Abe sign a deal

Asian stock indices are mixed today. Nikkei gained 0.1% to 22048.24 despite yen resumed climb against the dollar after US and Japan signed a trade deal on Wednesday eliminating tariffs excluding autos currently at 2.5%. Chinese stocks are mixed: the Shanghai Composite Index is down 0.9% while Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index lost another 0.5% with Australian dollar little changed against the greenback.

Brent falls

Brent futures prices are extending losses today. Prices fell yesterday after Energy Information Administration report that US crude supplies rose for a second week in a row, by 2.4 million barrels: November Brent lost 1.1% to $62.39 a barrel on Wednesday.