By IFCMarkets
Dollar weakens as ISM manufacturing index declined further
US stocks closed sharply lower on Tuesday after weak manufacturing data. The S&P 500 fell 1.2% to 2940. Dow Jones industrial lost 1.3% to 26573. The Nasdaq dropped 1.1% to 7909. The dollar weakening resumed on ISM data showing the manufacturing index slipped from 49.1 to 47.8 for September, readings below 50 indicate contraction. 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 0.2% to 99.17 but is higher currently. Stock index futures point to lower openings today.
CAC 40 loss biggest among other European indexes
European stocks snapped three-session winning streak weighed by weak euro-zone and US manufacturing data on Tuesday. The EUR/USD turned higher yesterday while GBP/USD slid further with both pairs lower currently. The Stoxx Europe 600 ended 1.3% lower after final reading of Markit’s manufacturing PMI for euro zone showed manufacturing activity in September contracted at its steepest rate in almost seven years. The German DAX 30 lost 1.3% to 12236.83. France’s CAC 40 fell 1.4%. UK’s FTSE 100 slid 0.7% to 7360.32.
Australia’s All Ordinaries Index leads Asian indexes losses
Asian stock indices are falling today on rising global slowdown fears after weak US manufacturing data. Nikkei lost 0.5% to 21778.61 despite renewed yen slide against the dollar. Markets in mainland China are closed for a holiday and won’t reopen until next week. Hong Kong’s Hang Seng index is 0.2% lower. Australia’s All Ordinaries Index turned sharply lower closing down 1.5% as Australian dollar moved higher against the greenback.
Brent down
Brent futures prices are edging higher today. Prices fell yesterday on global demand decline concerns after weak US manufacturing data stoked global growth slowdown fears. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 5.9 million barrels last week. Prices fell yesterday: December Brent lost 0.6% to $58.89 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
Market Analysis provided by IFCMarkets
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
