Stock losses accelerate on economic slowdown fears - 3.10.2019

Dollar weakened further after ADP report

US stocks booked sharp back to back loses on Wednesday as weak new job creation data further undermined investor confidence already shaken by weak ISM report previous day. The S&P 500 fell 1.8% to 2887.61. The Dow Jones industrial average dropped 1.9% to 26078. Nasdaq lost 1.6% to 7785.25. The dollar weakening continued after private sector payrolls processing firm Automatic Data Processing report showed US added 135,000 new jobs in September, as average monthly job growth for the past three months fell to 145,000 from 214,000 for the same time period last year. 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 0.16% to 99.02 but is higher currently. Stock index futures point to higher openings today.

FTSE 100 leads European indexes losses

European stocks retreat widened on Wednesday as Washington announced it will impose tariffs on $7.5 billion worth of European imports beginning October 18 following World Trade Organization ruling the United States could impose the tariffs as retaliation for illegal European Union aid to Airbus. GBP/USD joined EUR/USD’s continuing climb yesterday with both lower currently. The Stoxx Europe 600 lost 2.7%. Germany’s DAX 30 fell 2.8% to 11925.25 as several forecasters including the Ifo Institute, DIW, IfW, IWH and RWI cut their economic forecasts for Germany. France’s CAC 40 tumbled 3.1% and UK’s FTSE 100 dropped 3.2% to 7122.54.

Australia’s All Ordinaries Index still loss leader among Asian indexes

Asian stock indices are mostly lower today after sharp losses on Wall Street overnight. Nikkei fell 2% to 21341.74 despite yen resumed slide against the dollar. Hong Kong’s Hang Seng Index is 0.2% higher. Australia’s All Ordinaries Index losses deepened to 2.2% with Australian dollar continuing its climb against the greenback.

Brent falls after build in US crude inventories

Brent futures prices are stable today. Prices fell yesterday after Energy Information Administration report US crude inventories rose a third week in a row by 3.1 million barrels, while gasoline inventories fell by 0.2 million barrels. December Brent crude dropped 2% to $57.69 a barrel on Wednesday.