SP500 logs back-to-back gains on Fed rate-cut hopes

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Dollar strengthened on strong ISM services data
US stock market extended gains on Wednesday despite mixed data. The S&P 500 gained 0.8% to 2826.15. TheDow Jones industrial average rose 0.8% to 25539.57. Nasdaq composite index advanced 0.6% to 7575.48. The dollar strengthening resumed as the Institute for Supply Management services sector index came in at above expected 56.9% after 55.5% April reading, while ADP payroll data firm reported that the U.S. economy added just 27,000 private-sector jobs in May. 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, added 0.2% to 97.30 but is lower currently. Futures on US stock indices point to higher openings today.



CAC 40 outperforms European indexes
European stocks rebound continued on Wednesday despite reports European Commission threatened disciplinary measures on Italy over the country’s rising public deb. Both the EUR/USD and GBP/USD turned lower and are sliding currently. The Stoxx Europe 600 gained 0.3% led by utility stocks. Germany’s DAX 30 added 0.1% to 11980.81 as German PMI index’s services sector final reading was upgraded. France’s CAC 40 rose 0.5% and UK’sFTSE 100 edged up 0.1% to 7220.22. The European Central Bank is expected to keep interest rates unchanged today while ECB president Dragi is widely expected to maintain a dovish stance in his news conference scheduled for 13:30 CET today.

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Shanghai Composite decline accelerates
Asian stock indices are mixed today. Nikkei slipped 0.01% to 20774.04 as yen resumed advancing against the dollar. Chinese stocks are mixed : the Shanghai Composite Index is down 1.2% while Hong Kong’s Hang Seng Indexis 0.1% higher. Australia’s All Ordinaries Index added another 0.4% despite Australian dollar turning higher against the greenback.



Brent falls after US crude inventories jump
Brent futures prices are extending losses today. Prices fell yesterday. The Energy Information Administration reported Wednesday US crude inventories jumped by above expected 6.8 million barrels last week while gasoline inventories climbed by 3.2 million. August Brent crude lost 2.2% to $60.63 a barrel on Wednesday.