By IFCMarkets
Dollar weakens after weak Chicago Fed index report
US stock market pullback continued on Monday led by technology shares hurting from ban on business with Huawei Technologies. The S&P 500 lost 0.7% to 2840.23. Dow Jones industrial slid 0.3% to 25679.90. The Nasdaq composite tumbled 1.5% to 7702.38. The dollar weakened after data showed Chicago Fed’s national activity index slipped to a negative 0.45 in April, down from an upwardly revised positive 0.05 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, edged down 0.03% to 97.93 but is higher currently. Futures on US stock indexes point to higher openings today.
DAX 30 suffers heaviest loss among European indexes
European stocks slide accelerated on Monday as slump in technology shares dragged equity markets. Both EUR/USD and GBP/USD turned higher but are lower currently. The Stoxx Europe 600 index declined 1.2% with technology sector dropping 3%. The DAX 30 fell 1.6% to 12041.29. France’s CAC 40 tumbled 1.5%. UK’s FTSE 100 lost 0.5% to 7310.88.
Shanghai Composite leads Asian indexes gains
Asian stock indices are mixed today. Nikkei closed 0.1% lower at 21272.45 despite enduring yen slide against the dollar. Markets in China are mixed despite news US has decided to extend 90-day exemptions to some US companies from the technology export ban announced last week: the Shanghai Composite Index is up 1.2% while Hong Kong’s Hang Seng Index is 0.1% lower. Australia’s All Ordinaries Index extended gains 0.4% as Australian dollar resumed its slide against the greenback.
Brent up
Brent futures prices are edging higher today on US-Iran tension with global markets slump capping gains. Prices fell yesterday despite Middle East tensions: July Brent crude lost 0.3% to $71.97 a barrel on Monday.
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