Stocks pull back on rate cut bets’ moderation

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Dollar strengthens on improving consumer sentiment
US stock market advance paused on Friday as steep interest rate cut expectations moderated after New York Fed said Williams’ comments about need to ‘act quickly’ referred to his academic research and not upcoming Federal Reserve meeting. The S&P 500 slid 0.6% to 2976.61, losing 1.2% for the week. Dow Jones industrial slipped 0.3% to 27154.20. The Nasdaq fell 0.7% to 8146.49. The dollar weakening reversed as University of Michigan consumer sentiment index was revised upward. 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 0.43% to 96.13 and is higher currently. Stock index futures point to higher market openings today


DAX 30 leads European indexes rebound
European stocks ended marginally higher on Friday despite renewed concerns Italy’s year-old coalition government might collapse. Both EUR/USD and GBP/USD turned lower but are higher currently. The DAX 30 rose 0.3% to 12260.07. France’s CAC 40 inched up 0.03% and UK’s FTSE 100 added 0.2% to 7508.70.

Chinese shares lead Asian indexes retreat
Asian stock indices are mostly falling today while the STAR market in China, a Nasdaq-style board of 25 tech companies, gains after opening due to oversubscription in IPO shares by retail investors. Nikkei fell 0.2% to 21416.79 with yen slide against the dollar intact. China’s markets are retreating: the Shanghai Composite Index is down 1.3% and Hong Kong’s Hang Seng Index is 1.3% lower. Australia’s All Ordinaries Index pulled back 0.1% with the Australian dollar slide against the greenback intact.

Brent up on Middle East tensions
Brent futures prices are extending gains today. Prices rose on Friday on report Iran seized a U.K.-flagged tanker Stena Impero: Brent for September settlement ended 0.9% higher at $62.47 a barrel Friday, nevertheless closing 6.4% lower for the week.