Dollar weakening accelerated on Philadelphia Fed manufacturing index decline
US stock market rebound continued on Thursday as risk appetite was boosted by expectations of a July rate cut. The S&P 500 gained 1% ending at a record high 2954.18. The Dow Jones industrial average advanced 0.9% to 26753.17. Nasdaq composite index rose 0.8% to 8051.34. The dollar weakening accelerated as the Philadelphia Fed manufacturing index in June declined to 0.3 after registering a four-month high of 16.6 in May. Readings above zero indicate improving conditions… 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, fell 0.6% to 96.62 but is higher currently. Futures on US stock indices point to higher openings today.
DAX 30 leads European indexes advance
European stocks extended gains on Thursday as the Bank of England held interest rates steady at 0.75% while cutting its growth forecast for Britain’s economy to zero in the second quarter. Both EUR/USD and GBP/USDcontinued their climb with both down currently. The Stoxx Europe 600 index ended 0.5% higher led by technology shares. Germany’s DAX 30 rose 0.4% to 12353.39. France’s CAC 40 inched up 0.3% and UK’s FTSE 100 gained 0.3% to 7424.44.
Shanghai Composite advances while Nikkei falls
Asian stock indices are mixed today. Nikkei fell 1.0% to 21258.64 as yen reversed its earlier gains against the dollar on weak manufacturing data. Chinese shares are mixed: the Shanghai Composite Index is up 0.5% while Hong Kong’s Hang Seng Index is 0.3% lower as protesters gathered again outside government offices. Australia’s All Ordinaries Index turned 0.5% lower with Australian dollar little changed against the greenback.
Brent rises as Iran tensions rise
Brent futures prices are extending gains today. Prices rebounded yesterday after Iran shot down a U.S. military drone near the Strait of Hormuz: August Brent crude surged 4.3% to $64.45 a barrel on Thursday.