By IFCMarkets
US stock market paced higher on Tuesday after President Trump tweeted that US and Chinese teams would begin preparations for the leaders to sit down at the G20 summit in Osaka. The S&P 500 gained 1% to 2885.72. Dow Jones industrial rose 1.4% to 26465.54. The Nasdaq advanced 1.4% to 7953.88. The dollar weakening resumed ahead of Federal Reserve decision today with central bank widely expected to leave rates unchanged but signal impending rate cuts: 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, slipped 0.03% to 97.51 but is higher currently. Futures on US stock indices point to higher openings today.
European stocks rebounded on Tuesday led by basic resources shares after ECB President Draghi said the central bank will provide more stimulus if inflation does not pick up. The EUR/USD turned lower while GBP/USD recovered with both currencies sliding currently. The Stoxx Europe 600 ended 2% higher. The German DAX 30 jumped 2% to 12331.75. France’s CAC 40 rallied 2.2%. UK’s FTSE 100 added 1.2% to 7443.04.
Asian stock indices are all in green today after President Trump’s tweet he will hold extended talks with Chinese President Xi Jinping at the G20 summit in Japan. Nikkei surged 1.7% to 21333.87 despite continuing yen climb against the dollar notwithstanding report Japan’s exports fell sixth straight month in May. Chinese stocks are rising: the Shanghai Composite Index is up 1.0% and Hong Kong’s Hang Seng index is 2.4% higher. Australia’s All Ordinaries Index extended gains 1.2% with Australian dollar resuming its decline against the greenback.
Brent futures prices are edging higher today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 0.8 million barrels last week. Prices rose yesterday. Prices of August Brent ended up 2% at $62.14 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
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