U.S. Stocks Edge Higher
IFC Markets | Apr 24, 2018 05:37AM ET
Dow logs fourth straight loss
US equities ended marginally higher Monday while Dow and Nasdaq slipped. The S&P 500 gained 0.01% to 2670.29, with six of its 11 main sectors finishing higher. 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, rose 0.6% to 89.895. Stock indices futures indicate mixed openings today.
Dollar added to last weeks gains as bond yields continued rising on rising inflation expectations. The 10-year Treasury note yield breached above 2.995% at one point. Many fund managers have forecast a move above 3% will prompt a stock market recession. Expectations of higher interest rates were reflected in fed fund futures prices data last Friday showing traders priced a 38% chance of four hikes this year compared with a 24.5% chance on April 11. Economic news were mixed: the Chicago Fed national activity index for March declined to 0.10 from 0.98 in February while preliminary readings of Markit’s manufacturing and services purchasing managers’ indexes for April rose: to 56.5 in April from 55.6 for Manufacturing PMI, and to 54.4 in from 54.0 in March for Services PMI.
CAC 40 leads European indices recovery
European stocks recovered Monday. The euro and British Pound extended losses against the dollar. The Stoxx Europe 600 index rose 0.4%, led by financial shares. The DAX 30 gained 0.3%, France’s CAC 40 outperformed ending up 0.5% and UK’s FTSE 100 advanced 0.4% to 7398.87. Indices opened mixed today.
Financial stocks advanced on the back of rising bond yields while data showed services sector and manufacturing activities expansion continued in euro-zone: Markit’s flash services April reading was at 55.0, and the flash manufacturing PMI at 56.0. A reading above 50 indicates expansion. Preliminary manufacturing and services PMI reports from Germany and France largely beat expectations.
Chinese stocks lead Asian indices rebound
Asian stock indices are higher today. Nikkei rose 0.9% to 22278 led by financial shares with continued yen slide against the dollar buoying exporter shares. Chinese stocks are leading the gains: the Shanghai Composite Index is up 2% and Hong Kong’s Hang Seng Index is 1% higher. Australia’s ASX All Ordinaries is up 0.6% with Australian dollar extending slide against the US dollar as Australia’s Q1 inflation came in lower than expected.
Get The News You Want
Brent futures prices are edging lower today. Prices ended higher yesterday on rising Middle East after reports a Saudi led air strike killed the head of the Houthi rebels in Yemen. June Brent crude settled 0.9% higher at $74.71 barrel on Monday.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.