All three main US indices log solid gains - 17.8.2018

Dow logs best gain in 4 months

US stock market ended higher Thursday erasing previous session losses led by telecommunications and consumer staples shares. The S&P 500 rose 0.8% to 2840.69 with all 11 sectors finishing in positive territory. Dow Jones industrial average rallied 1.6% to 25558.73. The Nasdaq composite gained 0.4% to 7806.52. The dollar strengthening stopped: 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 0.1% to 96.565 and is lower currently. Stock index futures point to higher openings today.

The news China will send a delegation to the US later this month to resume trade talks, the first such meeting since July, boosted investor confidence bruised by Turkey crisis. Economic data were mixed: initial jobless claims fell more than expected last week, while the Philadelphia Fed manufacturing index sank to a 21-month low of 11.9 in August. At the same time construction of new houses increased by less than 1% in July, indicating the recent slowdown in building continues due to higher mortgage rates and growing shortages of skilled craftsmen.

DAX 30 opens higher than main European indices

European stocks ended solidly higher on Thursday. Both the EUR/USD and GBP/USD turned higher with both pairs higher currently. The Stoxx Europe 600 index added 0.5%. Germany’s DAX 30 rose 0.6% to 12237.17. France’s CAC 40 tacked 0.8% and UK’s FTSE 100 gained 0.8% to 7556.38. Markets opened mixed today.

EU50

Asian indices recover

Asian stock indices are mostly rising today with trade tensions still in focus ahead of Chinese delegation US visit on August 21 led by Vice Minister of Commerce Wang Shouwen. Nikkei ended 0.4% higher at 22270.38 despite yen’s turn higher against the dollar. Chinese stocks are mixed: the Shanghai Composite Index is 1.3% lower while Hong Kong’s Hang Seng Index is up 0.2%. Australia’s All Ordinaries Index is up 0.2% while Australian dollar extended gains against the greenback.

Brent recovery continues

Brent futures prices are edging higher today. Prices ended higher yesterday after slump on after data from the Energy Information Administration showed US crude inventories rose 6.8 million barrels. Brent for October settlement closed 1% higher at $71.43 a barrel on Thursday.