By IFCMarkets

US stock market rebounded on Thursday as New York Fed President John Williams said the most effective strategy for the Federal Reserve is to cut rates at the first sign of trouble with benchmark interest rate so close to zero. The S&P 500 gained 0.4% to 2995.11. The Dow Jones industrial average edged up 0.01% to 27222.97. Nasdaq composite index rose 0.3% to 8207.24. The dollar weakening accelerated as traders interpreted Williams’ comments as support for a half-point rate cut at the Fed’s next policy meeting on July 30-31: 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 0.5% to 96.70 but is higher currently. Stock index futures point to higher market openings today

European stocks extended losses on Thursday led by 5.6% drop in SAP share after Europe’s most valuable tech company’s disappointing quarterly results. Both EUR/USD and GBP/USD accelerated their climb with both pairs lower currently. The Stoxx Europe 600 index ended 0.2% lower. Germany’s DAX 30 lost 0.9% to 12227.85. France’s CAC 40 fell 0.8% and UK’s FTSE 100 slid 0.6% to 7493.09 despite a report of unexpected 0.1% on month rise in UK retail sales for June.

Asian stock indices rebounded today after a recovery on Wall Street overnight. Nikkei rose 2% to 21466.99 as yen resumed its slide against the dollar. Chinese shares are gaining despite reports trade negotiations between the U.S. and China had faltered over restrictions on Chinese telecommunications giant Huawei: the Shanghai Composite Index is up 0.8% and Hong Kong’s Hang Seng Index is 1.1% higher. Australia’s All Ordinaries Index turned 0.8% higher as Australian dollar resumed its slide against the greenback.

Brent futures prices are edging higher today after a U.S. Navy ship destroyed an Iranian drone in the Strait of Hormuz. Prices fell yesterday: September Brent crude lost 2.7% to $61.93 a barrel on Thursday.

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