US stocks extend gains on growing trade optimism

By IFCMarkets

US stock market added to previous session gains on Wednesday despite soft data. The S&P 500 gained 0.6% to 2850.96. The Dow Jones industrial average added 0.5% to 25648.02. Nasdaq composite index rose 1.1% to 7822.15. The dollar strengthening continued despite data showing retail sales declined 0.2% last month after strong 1.7% growth in March: 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 0.04% to 97.56 but is lower currently. Futures on US stock indexes point to lower openings today.

European stocks extended gains on Wednesday on news that President Donald Trump plans to delay the implementation of auto tariffs on European car imports by up to six months. Both the EUR/USD and GBP/USD continued sliding with euro higher currently while Pound falls against the dollar. The Stoxx Europe 600 added 0.4% led by auto shares. Germany’s DAX 30 rose 0.9% to 12099.57 as German economy recorded 0.4% growth in the first quarter following stagnant fourth quarter in 2018. France’s CAC 40 gained 0.6%. UK’s FTSE 100 advanced 0.8% to 7296.95.

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Asian stock indices are mostly rising today. Nikkei turned 0.6% lower to 21062.98 as yen climb against the dollar accelerated. Chinese stocks are gaining despite reports President Trump signed an order that would ban telecom equipment from countries considered “foreign adversaries” which will apply to China’s Huawei Technologies too: the Shanghai Composite Index is up 1% and Hong Kong’s Hang Seng Index is 0.2% higher. Australia’s All Ordinaries Index extended gains 0.7% as Australian dollar continued sliding against the greenback at a previous session’s pace.

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Brent futures prices are extending gains today. Prices rose yesterday despite the report US crude stockpiles rose 5.4 million barrels while gasoline stocks declined by 1.1 million last week. July Brent crude added 0.7% to $71.77 a barrel on Wednesday.

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