Investors await Fed minutes
US stocks will reopen today after Fourth of July holiday. The dollar was little changed: 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, inched 0.06% higher to 96.25. Investors await the Federal Reserve minutes due today at 20:00 CET for guidance on policy makers’ positions on continuing interest rate hikes this year and more details on plans for reducing the Fed’s holdings of US government bonds. US factory orders for May are due at 16:00 CET, outlook is negative for dollar.
European markets retreat
European stock indices ended lower on Tuesday as North Korea’s missile launch undermined market sentiment. Both the euro and British Pound extended losses against the dollar. The Stoxx Europe 600 fell 0.3%. Germany’s DAX 30 lost 0.3% closing at 12437.13. France’s CAC 40 retreated 0.4% and UK’s FTSE 100 slipped 0.3% to 7357.23. Markets opened 0.1% lower today.
Asian markets rise
Asian stock indices are mostly higher today following a subdued session on Tuesday after North Korea missile test. Nikkei gained 0.25% to 20081.63 despite a stronger yen against the dollar. Chinese stocks are up as investors shrugged off weaker than expected data: Caixin services purchasing managers' index (PMI) fell to 51.6 in June from 52.8 in May, signaling slowing of services sector growth. The Shanghai Composite Index is 0.7% higher and Hong Kong’s Hang Seng Index is up 0.6%. Australia’s All Ordinaries Index is down 0.3% as Australian dollar rebounded against the greenback.
Oil remains below $50
Oil futures prices are steady today, trading below $50 a barrel. Oil prices declined on Tuesday on expectations of a weekly drop in US crude oil inventories. A rise in OPEC supplies weigh on outlook after a report OPEC exported 25.92 million barrels per day (bpd) in June, 450 thousand bpd above May. Russia opposes any proposal to cut output further and wants to continue with the current deal with government officials saying any further supply curbs would send the wrong message to the market. September Brent crude fell 0.1% to $49.61 a barrel on London’s ICE Futures exchange on Tuesday.