{"id":138764,"date":"2018-12-12T06:51:23","date_gmt":"2018-12-12T11:51:23","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=138764"},"modified":"2018-12-12T06:51:23","modified_gmt":"2018-12-12T11:51:23","slug":"us-equities-slip-despite-china-lowering-auto-tariffs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/12\/us-equities-slip-despite-china-lowering-auto-tariffs\/","title":{"rendered":"US equities slip despite China lowering auto tariffs"},"content":{"rendered":"
December 12, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

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Dollar strengthens as wholesale prices rise<\/h2>\n<\/div>\n<\/div>\n

US stock market <\/b> slipped on Tuesday despite China\u2019s concession to reduce tariffs on US autos to 15%, down from 40% after the renewal of US-China trade talks. The S&P 500 <\/em> slipped 0.04% to 2636.78. Dow Jones <\/em> lost 0.2% to 24370.24. The Nasdaq <\/a> however gained 0.2% to 7031.83. The dollar strengthening continued as wholesale cost of goods and services rose by 0.1% in November when a decline was expected: 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, rose 0.2% to 97.44 but is lower currently. Futures on stock indexes point to higher openings today.<\/p>\n

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Technology stocks have been under pressure on US-China trade war concerns as many US companies have supply chains established in China. Treasury yields declined with increased demand for heaven asset after stocks retreat accelerated following disappointing home builder data: the National Association of Home Builder’s monthly confidence index fell 8 points to 60 in November, the lowest overall reading in more than two years.<\/p>\n<\/div>\n<\/div>\n

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FTSE 100 lags behind major European indices<\/h2>\n<\/div>\n<\/div>\n

European stocks <\/b> rebounded on Tuesday. The EUR\/USD <\/em> and GBP\/USD\u2019s <\/em> continued their slide but both are higher currently. The Stoxx Europe 600 rose 1.5%. The German DAX 30 <\/a> advanced 1.5% to 10780.51 as German economic expectations rose in December according to ZEW economic research institute. France\u2019s CAC 40<\/em> gained 1.4% after President Macron announced plans to cut taxes and lift wages for workers, and UK\u2019s FTSE 100 <\/em> added 1.3% to 6806.94.<\/p>\n

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Italy\u2019s budget deficit concerns came to fore again. Today is the last day Italy can submit a revised budget proposal to the European Union. The first proposal with a budget deficit target of 2.4% of GDP in 2019 was rejected by the EU, but Italy\u2019s government said it could not revise the budget deficit target. If no change is resubmitted today the EU is expected to open an excessive deficit procedure and apply sanctions against Italy.<\/p>\n<\/div>\n<\/div>\n

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Nikkei leads Asian indices gains<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b> are advancing today. Nikkei <\/em> jumped 2.2% to 21602.75 as yen climb against the dollar continued. Chinese stocks extended gains: the Shanghai Composite Index <\/em> is up 0.3% and Hong Kong\u2019s Hang Seng index <\/em> is 1.8% higher. Australia\u2019s All Ordinaries Index added 1.4% despite Australian dollar continued climb against the greenback.<\/p>\n

\"HK50<\/p>\n

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Brent <\/a> up on expected US inventory drop<\/h2>\n<\/div>\n<\/div>\n

Brent futures prices <\/b> are rising today supported by expectations of an OPEC-led output cut in 2019. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 10.2 million barrels last week. Prices rose yesterday: February Brent gained 0.4% to $60.20 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis 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 \u0430 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.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Dollar strengthens as wholesale prices rise US stock market slipped on Tuesday despite China\u2019s concession to reduce tariffs on US autos to 15%, down from 40% after the renewal of US-China trade talks. The S&P 500 slipped 0.04% to 2636.78. Dow Jones lost 0.2% to 24370.24. The Nasdaq however gained 0.2% to 7031.83. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-138764","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138764","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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=138764"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138764\/revisions"}],"predecessor-version":[{"id":138770,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138764\/revisions\/138770"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=138764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=138764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=138764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}