Equities pull back after Trump says ‘a long way to go’ on trade talks

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Dollar advances on strong retail sales data
US stock market inched lower on Tuesday after president Trump said an agreement on bilateral trade with China had ‘a long way to go’ despite strong economic data. The S&P 500 slid 0.3% to 3004.0. Dow Jones industrial slipped 0.1% to 27335.6. The Nasdaq lost 0.4% to 8222.8. The dollar strengthening accelerated as retail sales rose above expected 0.4% over month in June instead of forecast 0.1%: 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 0.5% to 97.37 and is higher currently. Stock index futures point to mixed market openings today

CAC 40 leads European indexes gains
European stocks continued advancing on Tuesday supported by positive external trade data showing euro-zone ran May trade surplus of 23 billion euros. The GBP/USD and EUR/USD slump accelerated with both pairs lower currently. The Stoxx Europe 600 ended 0.3% higher led by construction and materials shares. The German DAX 30 added 0.4% to 12430.97 with gains limited by ZEW report economic sentiment deteriorated in Germany in July. France’s CAC 40 rose 0.7%. UK’s FTSE 100 advanced 0.6% to 7577.20.

Australia’s All Ordinaries Index gains while other Asian indexes fall
Asian stock indices continue retreating today after president Trump added he could impose tariffs on another $325 billion of imports from China after telling US and China ‘had long way to go’ before a deal Tuesday. Nikkei fell 0.3% to 21469.18 as yen inched higher against the dollar. Chinese stocks are falling: the Shanghai Composite Index is down 0.2% and Hong Kong’s Hang Seng index is 0.1% lower. Australia’s All Ordinaries Index however turned 0.5% higher with Australian dollar little changed against the greenback.


Brent recovers
Brent futures prices are rebounding today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 1.4 million barrels last week. Prices plunged yesterday after US Secretary of State Mike Pompeo said Iran is ready to enter negotiations over its missile program: September Brent lost 2% to $64.35 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.