Breaking News
0

Energy Leads US Equities Rebound

By IFC MarketsMarket OverviewMay 31, 2018 07:54AM ET
www.investing.com/analysis/energy-leads-us-equities-rebound-200320815
Energy Leads US Equities Rebound
By IFC Markets   |  May 31, 2018 07:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Upbeat Beige Book supports June rate hike

US markets recovered on Wednesday led by energy shares as oil rallied. The S&P 500 rose 1.3% to 2724.01, with energy shares up 3.1% and all 11 main sectors finishing higher. The Dow Jones added 1.3% to 24667.78. The NASDAQ Composite index gained 0.9% to 7462.45.The dollar weakened: 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 0.8% to 94.05 and is lower currently. Stock index futures indicate higher openings today.

Upbeat Beige Book report buoyed market sentiment, lifting Treasury yields. The Federal Reserve said the US grew “moderately” from late April to early May, characterizing the economy as performing well in every region of the country. While it said prices for goods and services rose “moderately” in most regions, the growing economy at record low unemployment and a gradual rise in prices all point to the Fed raising its benchmark interest rate in June. The economic news were mixed: the US added 178,000 private sector jobs in May, according to ADP said Wednesday. Meanwhile, the first revision of gross domestic product data showed the US economy grew at slightly slower pace in the first quarter than originally reported: 2.2% annually instead of 2.3%. On the other hand the trade deficit in goods fell 0.6% to $68.2 billion in April from $68.6.

DAX Leads European Indices Recovery

European stock indices edged higher on Wednesday as concerns about the negative impact of Italian political uncertainty after President Matarella rejected antiestablishment coalition’s choice for economy minister eased . Both the British Poundand euro rebounded against the dollar and both are rising currently. The Stoxx Europe 600 added 0.3%. Germany’s DAX 30rose 0.9% to 12783.76. France’s CAC 40 slipped 0.2% and UK’s FTSE 100 ended 0.8% higher at 7689.57. Markets opened 0.1% - 0.3% higher today.

Italian stocks jumped 2.1% recovering most of previous day slump on reports 5 Star and League parties have renewed efforts to form a coalition government. Economic news were positive: inflation in Germany jumped to 2.2% from 1.4% in April and data showed Germany’s jobless rate fell to a record low 5.2%, indicating continued strength in the labor market of Europe’s largest economy.

Chinese Stocks Lead Asian Indices Rebound

Asian stock indices are higher today tracking Wall Street moves overnight. Nikkei ended 0.8% higher at 22201.82 despite yen gain against the dollar. China’s stocks are rising as manufacturing PMI showed unexpected strength for May: theShanghai Composite Index is 1.9% higher while Hong Kong’s Hang Seng Index is up 1.6%. Australia’s ASX All Ordinaries Index is up 0.5% as Australian dollar remains steady against the greenback.

ASX All Ordinaries
ASX All Ordinaries

Brent Slips

Brent futures prices are retreating today as traders expect a build in US crude oil stock. The American Petroleum Institute reported yesterday US crude stockpiles rose by 1 million barrels to 434.9 million barrels last week. Prices rose yesterday after reports OPEC will keep crude production curbs in place until at least the end of the year. July Brent crude jumped 2.8% to $77.50 a barrel on Wednesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.

Energy Leads US Equities Rebound
 
Energy Leads US Equities Rebound

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fulfilling trading operations under conditions of significant leverage, or relatively little changes of the rate of financial tool (currency pair, index, etc.) can cause significant changes to the customer trading account (proportionally to this leverage) . At movement of the market against the customer position he can incur significant loss of part or the whole deposit. The customer is fully responsible for using his financial resources and choosing the trading strategy. Many financial tools have high volatility and/or have significant intraday time ranges of price changes that define high probability of reception of both fast profits and losses from trading operations.
Continue with Google
or
Sign up with Email