{"id":111988,"date":"2017-08-31T10:19:30","date_gmt":"2017-08-31T14:19:30","guid":{"rendered":"http:\/\/countingpips.com\/?p=111988"},"modified":"2017-08-31T10:19:30","modified_gmt":"2017-08-31T14:19:30","slug":"us-markets-advance-on-positive-economic-reports","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/us-markets-advance-on-positive-economic-reports\/","title":{"rendered":"US markets advance on positive economic reports"},"content":{"rendered":"
August 31, 2017<\/div>
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By\u00a0IFCMarkets<\/a><\/p>\n

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Technology stocks lead US equities higher<\/h2>\n<\/div>\n<\/div>\n

US stocks <\/b> extended gains on Wednesday on back of positive economic data. The dollar rebound continued: the live dollar index<\/a> data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, closed up 0.5% at 92.837. The S&P 500<\/a> advanced 0.5% settling at 2457.59 led by technology stocks. Eight out of 11 main sectors ended higher. The Dow Jones <\/em> industrial average added 0.1% to 22892.43. Nasdaq <\/em> composite outperformed jumping 1% to 6368.31 helped by gains biotechnology stocks.<\/p>\n

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US GDP growth in the second quarter was upgraded to 3% from 2.6% advance estimate. The GDP preliminary reading was better than a 2.7% expected growth. At the same time the ADP reported that private sector payroll has risen 237 thousand in August, a sharp rise from 201 thousand in July. Strong economic reports strengthen the case of another rate hike this year, supporting dollar. At a rally in Springfield, Missouri, President Trump said he wanted to see the corporate tax rate reduced from 35% to 15%.<\/p>\n<\/div>\n<\/div>\n

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European stocks rebound as North Korea tensions ease<\/h2>\n<\/div>\n<\/div>\n

European stocks <\/b> rebounded on Wednesday as investor risk appetite was boosted by easing of North Korea tensions. The euro <\/em> continued the slide against the dollar while British Pound <\/em> inched higher. The Stoxx Europe 600 index rose 0.7%. Germany\u2019s DAX 30 <\/em> gained 0.5% to 12002.47. France\u2019s CAC 40 <\/a> rose 0.4% and UK\u2019s FTSE 100 <\/em> added 0.4% to 7365.26.<\/p>\n

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Positive economic reports also aided in buoying investor confidence as North Korea tensions eased. German inflation rose more than expected in August, rising to 1.8% annual rate from 1.5% in July. Economic sentiment in the euro-zone in August rose to highest in more than 10 years: 111.9 from 111.3 in July. Today at 09:55 CET German unemployment rate will be published and at 11:00 CET the euro-zone inflation report will come out. The outlook is neutral for euro, no changes are expected.<\/p>\n

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Asian stocks mixed<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b> are mixed today. The Nikkei <\/em> ended 0.7% higher at 19646.24 helped by weaker yen against the dollar. Chinese stocks are down after data showed China\u2019s nonmanufacturing sector growth slowed in August while factory growth unexpectedly accelerated: Shanghai Composite Index <\/em> is 0.2% lower and Hong Kong\u2019s Hang Seng Index <\/em> is down 0.7%. Australia\u2019s All Ordinaries Index is 0.7% higher with the Australian dollar little changed against the greenback.<\/p>\n

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Oil lower despite US inventory draw<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices <\/b> are lower today after US inventories official report on Wednesday indicated crude inventories dropped by 5.39 million barrels last week to 457.77 million barrels. Prices fell nevertheless as demand is expected to be weak in near term after flooding from storm Harvey shut down almost a quarter of US refineries. October Brent crude fell 2.2% to $50.86 a barrel on Wednesday on London\u2019s ICE Futures exchange. At the same time US gasoline prices jumped to $2 per gallon amid fears of a supply squeeze.<\/p>\n<\/div>\n<\/div>\n

Market Analysis provided by\u00a0IFCMarkets<\/a><\/strong><\/p>\n

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By\u00a0IFCMarkets Technology stocks lead US equities higher US stocks extended gains on Wednesday on back of positive economic data. The dollar rebound continued: the live dollar index data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, closed up 0.5% at 92.837. The S&P 500 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-111988","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=111988"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111988\/revisions"}],"predecessor-version":[{"id":111989,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111988\/revisions\/111989"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=111988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=111988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=111988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}