Federal Reserve plans reducing balance sheet later this year
US stock indices retreated on Wednesday after release of hawkish March Fed meeting minutes. The dollar strengthened as minutes revealed Federal Reserve plans to reduce its $4.5 trillion balance sheet later this 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, closed up 0.02% at 100.516. The S&P 500 lost 0.3% settling at 2352.92 led by financial and telecom stocks, with nine of the eleven primary sectors finishing in the red. The Dow Jones industrial average fell 0.2% to 20648.15 weighed by losses in JP Morgan and Cisco shares. The Nasdaq index dropped 0.6% closing at 5864.48.
Energy shares lead European stocks higher
European stocks inched higher on Wednesday as mining and energy shares led advancers, with losses from auto shares limiting the gains. The euro fell while the British Pound strengthened against the dollar. The Stoxx Europe 600 added less than 0.1%. Germany’s DAX 30 fell 0.5% to 12217.54. France’s CAC 40 lost 0.2% while UK’s FTSE 100 index gained 0.1% to 7331.68.
Asian investors cautious on uncertain US-China trade prospects
Asian stock indices are mostly lower today as investors refrain from big bets ahead of the summit meeting between US and China presidents Donald Trump and Xi Jinping. Nikkei ended down 1.4% at 18597.06, four month low as dollar inched lower against the yen with uncertainty about US-China trade prospects boosting the appeal of safe haven yen. Chinese stocks are higher marginally after Caixin PMI Services index showed services sector expanded at slower pace in March: The Caixin PMI Services index declined to 52.2 from 52.6 in February. Shanghai Composite Index is 0.3% higher while Hong Kong’s Hang Seng Index is down 0.6%. Australia’s All Ordinaries Index is 0.l% lower despite weaker Australian dollar against the buck.
Oil prices rise following surprise US stock build
Oil futures prices are rising today after the Energy Information Administration reported that US crude inventories rose by 1.57 million barrels to a record 535.5 million barrels last week. At the same time gasoline and distillate inventories fell by 600 thousand and 500 thousand barrels respectively, less than expected.