Dow slips while U.S. broad market edges higher
U.S. stock indices closed marginally higher on Monday in light trading as investors refrained from making big bets ahead of Federal Reserve policy meeting this week. The dollar strengthened with markets pricing in high likelihood of March rate hike: the live dollar index data show the ICE U.S. dollar index, a measure of the dollar’s strength against a basket of six rival currencies, inched 0.1% higher to 101.406. The Dow Jones average slipped 0.1% to 20881.48, led by Intel (NASDAQ:INTC) and Merck (NYSE:MRK) shares. S&P 500 ended 0.1% higher at 2373.47 with consumer discretionary and materials stocks closing higher and the consumer staples and health care sectors finishing in the red. The NASDAQ composite index closed 0.2% higher at 5875.78.
European stocks advance despite heightened political uncertainty
European stocks advanced on Monday in choppy trade amid increased political uncertainty ahead of Dutch election on Wednesday and important monetary policy meetings of Federal Reserve and Bank of England.
The euro fell against the dollar but the British pound gained against the greenback after report UK Prime Minister Theresa May will not start the formal process to begin the country’s exit out of the European Union this week. The Stoxx Europe 600 index rose 0.4%. The DAX 30 gained 0.2% to close at 11990.03. France’s CAC 40 ended 0.1% higher and UK’s FTSE 100 rose 0.3% settling at 7367.08.
Asian markets down
Asian stocks are mostly down as investors await the Federal Reserve interest rate decision on Wednesday. Nikkei ended 0.1% lower at 19609.50 despite a weaker yen against the dollar. Toshiba (T:6502) stocks ended 0.5% higher after dropping more than 8%. The company announced it would "aggressively consider" a sale of most of Westinghouse nuclear power business.
Chinese stocks pared earlier gains after data showed retail sales in February grew less than expected: the Shanghai Composite Index is 0.1% lower while Hong Kong’s Hang Seng Index is up 0.3%. Australia’s ASX All Ordinaries ended little changed closing 0.02% lower with the Australian dollar falling against the dollar.
Oil prices retreat
Oil futures prices are falling today after focus shifted back again on global oversupply. Prices fell on Monday after the Energy Information Administration said it expects an increase in domestic shale oil output to nearly 5 million barrels a day in April, the highest monthly level in roughly a year. Later today the American Petroleum Institute industry group will report its estimate of the U.S. crude stockpile for the last week. May Brent crude lost 0.03% to $51.29 a barrel on London’s ICE Futures exchange on Monday.