S&P 500 hits record high in fifth session of consecutive gains
US stocks extended gains on Wednesday despite the minutes of Federal Reserve’s May policy meeting showed policy makers agreed to begin shrinking the central bank’s balance sheet and pointed to a likely rate increase in June. The dollar resumed the slide: 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, closed down 0.28% at 97.08. The S&P 500 gained 0.3% settling at record high 2404.39, advancing for fifth consecutive session. The Dow Jones industrial average rose 0.5% to 21012.42. NASDAQ index added 0.4% to 6163.02.
Draghi sees no need to change ECB policy
European stocks ended mostly lower on Wednesday as investors avoided making big bets ahead of the Fed minutes release. Both the euro and British pound resumed gains against the dollar. Germany’s DAX 30 ended 0.1% lower at 12642.87. France’s CAC 40 fell 0.1% but UK’s FTSE 100 index rose 0.4% settling at 7514.9 lifting also the Stoxx Europe 600 index 0.1%.
Asian stocks rise in the wake of China’s ratings downgrade by Moody’s
Asian stock indices are rising today underpinned by Federal Reserve’s cautious approach to future rate hikes and gradual pace of reduction of its balance sheet. Nikkei ended 0.4% higher at 19813.13 as the dollar resumed the growth against the yen.
Chinese stocks are up in the wake of Moodys downgrade the previous day: Shanghai Composite Index is 1.4% higher and Hong Kong’s Hang Seng Index is up 0.8%. Australia’s All Ordinaries Index is 0.3% higher as the Australian dollar pulled back against the US dollar.
Major producers of oil expected to extend output cut agreement today
Oil futures prices are rising today as traders expect the Organization of the Petroleum Exporting Countries and other major producers will extend output cut agreement at meeting in Vienna today. Prices ended lower yesterday ahead of the meeting of the major producers. A joint committee of OPEC and other major producers on Wednesday recommended a nine-month extension to the production-cut agreement that expires in June, but there has been talk of a potential one-year extension, to the end of June 2018. July Brent crude fell 0.4% to $53.96 a barrel on Wednesday on London’s ICE Futures exchange despite the US Energy Information Administration report US crude supplies fell 4.4 million barrels, a seventh week in a row.