U.S. broad market edges higher while Dow extends losses
U.S. stock market edged higher on Wednesday lifted by technology stocks. The dollar strengthened marginally inching higher from six-week low: 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, closed up 0.06% at 99.745. The S&P 500 rose 0.2% settling at 2348.45 led by technology stocks. The Dow Jones industrial average slipped less than 0.1% to 20661.30 weighed by 7.1% drop in Nike (NYSE:NKE) shares on weak growth outlook. The NASDAQ index gained 0.5% closing at 5821.64.
Bank shares drag European markets lower
European stocks retreat to one week low on Wednesday led by bank shares. The euro weakened against the dollar while British pound was little changed. The Stoxx Europe 600 fell 0.4% after 0.5% drop the previous day. Germany’s DAX 30 lost 0.5% to 11904.12. France’s CAC 40 slipped 0.2% while UK’s FTSE 100 index dropped 0.7% to 7324.72.
Asian stocks advance
Asian stock indices are higher today with investors cautious ahead of important heath care bill vote later today in U.S. Nikkei ended up 0.2% in a choppy trade today as dollar inched up from four-month lows against the yen. Chinese stocks are higher as global index provider MSCI Inc is seeking feedback from market participants on whether to add Chinese shares to a widely tracked index Emerging Markets Index. An inclusion can trigger billions of dollars in capital inflows into mainland stocks.
Shanghai Composite Index is 0.1% higher while Hong Kong’s Hang Seng Index is down 0.1%. Australia’s ASX All Ordinaries is up 0.4% despite with the Australian dollar continuing its slide against the dollar.
Oil prices rebound after drop following U.S. stockpile build
Oil futures prices are recovering today after briefly falling below $50 a barrel on Wednesday for the first time since November. Continued increase in U.S. shale oil output is in focus again as market participants hope the agreed 1.2 million barrel per day output cut by the Organization of the Petroleum Exporting Countries and major producers in January-June will help rebalance the market and remove the supply overhang.
The Energy Information Administration reported yesterday U.S. inventories climbed almost 5 million barrels to a record 533.1 million last week, much higher than a 2.8 million-barrel build forecasts. May Brent crude fell 0.6% to $50.64 a barrel on Wednesday on London’s ICE Futures exchange.
