Stocks pull back ahead of Fed decision

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Dollar weakening reversed ahead of Fed rate cut
US stocks pulled back on Tuesday on mixed earnings reports. The S&P 500 slipped 0.1% to 3036.89. The Dow Jones industrial average slid 0.1% to 27071.42 weighed by 2.1% drop in Google’s parent Alphabet on earnings miss. Nasdaq fell 0.6% to 8276.85. The dollar weakening was intact despite better than expected pending homes sales in September. 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, slipped 0.1% to 97.68 but is higher currently. Federal Reserve is expected to cut rates a third time today. Futures on US stock indices point to lower openings.

CAC 40 rises while other European indexes slip
European stock market snapped four-session winning streak on Tuesday. The EUR/USD joined GBP/USD’ climb with both pairs higher currently. The Stoxx Europe 600 ended 0.2% lower led by telecom stocks. The German DAX 30 slipped 0.02% to 12939.62. France’s CAC 40 however advanced 0.2%. UK’s FTSE 100 slid 0.3% to 7306.26 ahead of UK House of Commons vote authorizing an election on December 12.

Nikkei leads Asian indexes losses
Asian stock indices are falling today after reports a “phase one” deal might not be ready to be signed at the Asia-Pacific Economic Cooperation summit in Chile next month. Nikkei fell 0.6% to 22843.12 despite yen continued slide against the dollar. Chinese stocks are falling as China accused the US of “bullying” over a proposed ban on Chinese telecom equipment in US networks: the Shanghai Composite Index is down 0.5% and Hong Kong’s Hang Seng index is 0.5% lower. Australia’s All Ordinaries Index turned 0.8% lower as Australian dollar continued climbing against the greenback.


Brent down
Brent futures prices are edging lower today. Prices edged up yesterday: December Brent rose 0.03% to $61.59 a barrel on Tuesday. Trade group the American Petroleum Institute late Tuesday report indicated US crude supplies fell by 1.7 million barrels last week. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.