SP500, Nasdaq close at records on upbeat data - 6.2.2020

Dollar strengthening intact

US stock market closed at record high on Wednesday with better than expected data and corporate reports boosting risk appetite as President Trump was acquitted on impeachment by the Republican-led Senate. The S&P 500 advanced 1.1% to fresh record 3334.69. The Dow Jones industrial average rose 1.7% to 29290.85. Nasdaq gained 0.4% to new record 9508.68. The dollar strengthening accelerated as the Institute for Supply Management reported its purchasing manager’s index for services sector rose to a six-month high of 55.5 in January. 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, rose 0.3% to 98.25 and is higher currently. Futures on stock indexes point to higher openings today.

SP500 rallies above MA(200) 2/6/2020 Market Overview IFC Markets chart

DAX 30 led European indexes recovery

European stocks ended higher on Wednesday supported by surprisingly strong data. GBP/USD joined EUR/USD's accelerated decline yesterday with both pairs lower currently. The Stoxx Europe 600 ended up 1% led by auto shares as euro-zone’s business activity expanded at a five-month high pace in January as evidenced by purchasing managers’ index (PMI) final readings. Germany’s DAX 30 rose 1.5% to 13478.33 as Germany’s service sector grew at its strongest pace in five months. France’s CAC 40 advanced 0.9% while UK’s FTSE 100 added 0.6% to 7482.48.

Nikkei leads Asian indexes rebound

Asian stock indices are solidly higher today as coronavirus epidemic fears subsided. Nikkei rose 2.4% to 23873.59 with yen slide against the dollar intact. Markets in China are solidly higher after China announced it cut tariffs in half on $75 billion of US goods. Shanghai Composite Index is up 1.7% while while Hong Kong’s Hang Seng Index is 2.3% higher. Australia’s All Ordinaries Index recovered 1.1% with Australian dollar decline against the greenback intact.

Aramco cuts Asia prices while Brent recovers

Brent futures prices are extending gains today. Prices rebounded on Wednesday despite EIA report US crude oil inventories rose by bigger than expected 3.4 million barrels last week: April Brent added 2.5% to $55.28 on Wednesday. Shares of Saudi Aramco are down currently 0.15% at 33.60 riyals per share. Saudi Aramco lowered most of its official selling price “differentials” for the crude it sells to Asia. Saudi Aramco cut its official selling price differential for flagship Arab Light crude by 80 cents a barrel to a premium of $2.90 over the Middle East Oman-Dubai benchmark for March sales to Asia.