Dollar rise slowed as Evans says more easing may be needed
US stock indexes closed mixed on Wednesday erasing earlier losses as bond yields continued declining. The S&P 500 added 0.1% to 2883.98. The Dow Jones industrial average however slipped 0.1% to 26007.07. Nasdaq composite index gained 0.4% to 7862.83. The dollar strengthening decelerated as Chicago Fed President Charles Evans expressed support for another quarter-point interest rate cut this year. 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, inched up 0.03% to 97.62 but is lower currently. Stock index futures point to higher market openings today.
DAX 30 leads European indexes rebound
European stocks rebounded on Wednesday led by travel and leisure stocks. GBP/USD joined EUR/USD’s continued slide yesterday with both pairs rising currently. The Stoxx Europe 600 edged up 0.2%. Germany’s DAX 30 rose 0.7% to 12189.04 despite data showed German industrial output fell at a far steeper pace than expected in June. France’s CAC 40 gained 0.6% and UK’s FTSE 100 added 0.4% to 7198.7.
Shanghai Composite leads Asian indexes gains
Asian stock indices recovered today after China’s central bank set the yuan’s midpoint at its weakest level since 2008. Nikkei managed to end 0.4% higher at 20593.35 with yen slowing its climb against the dollar. Chinese stocks are rising after data showed China’s exports rose unexpectedly in July while People’s Bank of China set the yuan’s reference point at 7.0039 per dollar: the Shanghai Composite Index is up 0.9% and Hong Kong’s Hang Seng Index is 0.5% higher. Australia’s All Ordinaries Index extended its gains 0.8% despite Australian dollar’s resumed climb against the greenback.
Brent falls after surprise US crude inventories build
Brent futures prices are higher today. Prices slumped yesterday after the Energy Information Administration report US crude inventories rose unexpectedly 2.4 million barrels last week, first in 8 weeks while gasoline inventories rose by 4.4 million. October Brent crude tumbled 4.6% to $56.23 a barrel on Wednesday.