Stocks rise on 'really good chance' of China trade deal


Dollar weakened after Fed minutes

US stocks ended two-day skid on Wednesday as President Trump said there's 'really good chance' of China trade deal. The S&P 500 gained 0.9% to 2919.40. The Dow Jones industrial average advanced 0.7% to 26346.01. Nasdaq rose 1% to 7903.74. The dollar strengthening halted after September meeting Fed minutes showed several Fed officials argued that the chances of a US recession “had increased notably in recent months.” 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 less than 0.1% to 99.11 and is lower currently. Stock index futures point to lower openings today.

 DJI falls below MA(50)  10/10/2019 Market Overview IFC Markets chart

DAX leads European indexes movements

European stocks resumed advances on Wednesday after reports China was willing to discuss a deal providing no more tariffs are imposed including duties scheduled this month and in December. GBP/USD continued sliding yesterday while EUR/USD turned higher with no change in dynamics for both pairs currently. The Stoxx Europe 600 added 0.4% led by auto shares. Germany’s DAX 30 rose 1% to 12094.26. France’s CAC 40 advanced 0.8% and UK’s FTSE 100 gained 0.3% to 7166.50.

Shanghai Composite leads Asian indexes gains

Asian stock indices are rising today after reports Trump administration was considering putting off tariff hikes scheduled to go into effect next week and may soon issue licenses to some US companies to do business again with China’s Huawei Technologies. Nikkei rose 0.5% to 21551.98 despite yen resumed climb against the dollar. Chinese stocks are advancing: the Shanghai Composite Index is up 0.8% and Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index extended gains 0.01% despite Australian dollar resumed climb against the greenback.

Brent falls after build in US crude inventories

Brent futures prices are lower today. Prices gained yesterday despite Energy Information Administration report US crude inventories rose a fourth week in a row by 2.9 million barrels, while gasoline inventories fell by 1.2 million barrels. December Brent crude added 0.1% to $58.32 a barrel on Wednesday.

Note: This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Start trading with IFC Markets

We are ready to support you with any kind of questions, 24 hours a day.