SP 500, Nasdaq log 4th loss in a row - 10.9.2018

Dollar rebounds as wage growth accelerates

US stock market ended lower on Friday as President Trump indicated the US had drawn the tariff list for another $267 billion in Chinese goods in addition to tariffs on $200 billion ready to be implemented. S&P 500 lost 0.2% to 2901.52, closing 1% lower for the week. Dow Jones industrial average declined 0.3% to 25916.54. The Nasdaq slid 0.3% to 7902.54. The dollar strengthening resumed as strong August jobs report showed average wage gains accelerated to 2.9% over year in August from 2.7% in July: 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, jumped 0.4% to 95.365 and is higher currently. Futures on three main US stock point to higher openings today.

European indices open flat

European stocks edged higher on Friday. The GBP/USD joined the EUR/USD’s accelerated slide but both pairs are higher currently. The Stoxx Europe 600 Index rose 0.1%, booking 2.2% drop for the week. The DAX 30 added less than 0.1% to 11.959.63. France’s CAC 40 rose 0.2% but UK’s FTSE 100 lost 0.6% to 7277.70. Indices opened flat today

Asian indices mixed

Asian stock indices are mixed today after President Trump’s Friday tweet US had tariffs ready for additional $267 billion of Chinese exports besides the tariffs on $200 billion of Chinese exports it is poised to implement. Nikkei rose 0.3% to 22373 as government reported Japan's economy grew at an annualized pace 3.0% in the second quarter, better than the initial estimate of 1.9% and yen remained steady against the dollar. Chinese stocks are falling despite reports China consumer inflation accelerated to 6-month high: the Shanghai Composite Index is down 1.2% and Hong Kong’s Hang Seng Index is 1.3% lower. Australia’s All Ordinaries Index is down 0.03% as the Australian dollar turned higher against the greenback.

Brent rising

Brent futures prices are extending gains today ahead of Iran sanctions. Prices rose Friday as oil field services firm Baker Hughes reported the number of US oil drilling rigs in operation fell by 2 to 860 last week: Brent for November settlement rose 0.4% to close at $76.83 a barrel Friday, losing 1% for the week.