US stock indices record strong monthly gains
US stock indices pulled back on Tuesday as investors took a cautious stance ahead of Trump’s Congress speech. The dollar strengthened further after New York Fed President William Dudley’s comment the case for raising interest rates has become more compelling. 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 0.2% higher at 101.369.
Dow Jones industrial average slipped 0.1% to 20812.24 led by Wal-Mart Stores Inc (NYSE:WMT) and Nike (NYSE:NKE) shares. The S&P 500 lost 0.3% settling at 2363.64 with consumer-discretionary and industrial stocks weighing on the broad market index. The NASDAQ index fell 0.6% to 5825.44. All three benchmarks finished higher February for a fourth straight month with the Dow industrials up 4.9%, the S&P 500 up 3.7% and the Nasdaq gaining 3.8%.
Defense shares lead European stocks higher
European stocks closed marginally higher on Tuesday led by defense companies’ shares. Both the euro and British pound weakened against the dollar. The Stoxx Europe 600 rose 0.2% with Germany’s DAX 30 adding 0.1% to 11834.41. France’s CAC 40 outperformed gaining 0.3% and UK’s FTSE 100 advanced 0.1% to 7263.44.
Asian markets rise
Asian stocks are up today as investors were relieved President Trump’s Congress address contained no calls for protectionist measures. Nikkei gained 1.1% to 19519.44 as yen extended losses against the dollar and data showed manufacturing activity expanded in February at the fastest pace in almost three years. Chinese stocks are up after release of stronger than expected Manufacturing PMIs for February with both the Shanghai Composite Index and Hong Kong’s Hang Seng Index up 0.2%. Australia’s All Ordinaries Index is down 0.2% with the Australian dollar edging higher against the dollar on stronger-than-expected GDP reading.
Oil prices edge higher ahead of inventory data
Oil futures prices are edging higher today despite a 2.5 million barrels build in US stockpiles last week according to the report by the trade group the American Petroleum Institute. April Brent crude contract, which expired at the settlement, closed 0.6% lower at $55.59 a barrel on London’s ICE Futures exchange on Tuesday. It ended 0.8% lower for the month. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.