Technology rally leads US stocks gains - 16.1.2019

Dollar strengthens while wholesale inflation keeps pace

US stock market resumed advancing on Tuesday as technology shares rallied after Netflix announced it would raise US prices by 13% to 18%. The S&P 500 rose 1.1% to 2610.30. Dow Jones gained 0.7% to 24065.59. The Nasdaq climbed 1.7% to 7023.83. The dollar strengthened as data showed wholesale inflation - prices paid by businesses for inputs, remained unchanged at 2.5% over year in December. 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 0.4% to 95.96 and is higher currently. Stock index futures point to higher openings today.

FTSE 100 outperforms European indexes as UK rejects Brexit plan

European stocks advanced on Tuesday erasing most of previous session losses. Both GBP/USD and EUR/USD turned lower but are higher currently as Prime Minister Theresa May’s plan to leave the European Union by a March 29 deadline was rejected by the UK parliament. The Stoxx Europe 600 gained 0.4%. The German DAX 30 added 0.3% to 10891.79, France’s CAC 40 rose 0.5% and UK’s FTSE 100 rallied 0.6% to 6895.02.

GB100 tests MA(50) 01/16/2019 Market Overview IFC Markets chart

Nikkei falls while Asian indices gain

Asian stock indices are mixed today. Nikkei fell 0.6% to 20442.75 as yen turned higher against the dollar. Chinese stocks are higher: the Shanghai Composite Index is up 0.1%, and Hong Kong’s Hang Seng index is 0.2% higher. Australia’s All Ordinaries Index rose 0.4% despite the Australian dollar continuing climb against the greenback.

Brent up ahead of US inventory report

Brent futures prices are extending gains today. Prices ended higher yesterday on hopes China’s economy will get the boost pledged by Beijing. The American Petroleum Institute late Tuesday report indicated US crude inventories dropped by 0.56 million barrels last week while gasoline inventories rose. March Brent rallied 2.8% to $60.64 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.