Stocks close lower on doubts trade deal can be completed this year


Dollar strengthening intact

US stocks pullback broadened on Wednesday after reports trade deal my net be completed this year as China demands rollback of tariffs while US expands its demands in response. China resists demand to commit to buying a fixed value of US agricultural products as a part of the phase one deal, and president Trump said China isn't stepping up to level that he wanted. The S&P 500 lost 0.4% to 3108.46. The Dow Jones industrial average slid 0.4% to 277821. Nasdaq fell 0.5% to 8526.73. The dollar strengthening continued as Federal Reserve Governor Lael Brainard said she supported a pause after the three rate cuts. 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, added less than 0.1% to 97.86 and is higher currently. Futures on US stock indices point to lower openings.

FTSE 100 led European indexes retreat

European stock indexes extended losses on Wednesday after president Trump threatened the previous day to “just raise tariffs even higher” if China did not make a deal. EUR/USD joined GBP/USD’s slide yesterday with both pairs lower currently. The Stoxx Europe 600 slid 0.3% led by travel and leisure shares. Germany’s DAX 30 lost 0.5% to 13158.14. France’s CAC 40 slid 0.3% and UK’s FTSE 100 fell 0.8% to 7262.49.

Hang Seng falls for 4th consecutive session

Asian stock indices are all in red today as traders gauge the likelihood of resumption of US-China tariff war next month. Nikkei extended losses 0.5% to 23038.58 with yen advance against the dollar reversed. Chinese stocks are falling: the Shanghai Composite Index is 0.3% lower while Hong Kong’s Hang Seng Index is down 1.6%. Australia’s All Ordinaries Index fell 0.7% with Australian dollar little changed against the greenback.

Brent advance halted

Brent futures prices are edging lower today. Prices resumed advancing yesterday after Energy Information Administration report Wednesday that US crude supplies rose by a lower than forecast 1.4 million barrels last week: January Brent crude rose 0.5% to $62.37 a barrel on Wednesday.

BRENT falls to Fibonacci  38.2     11/21/2019 Market Overview IFC Markets chart

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