Stocks pull back after disappointing retail sales data - 17.10.2019

Dollar weakened on weak sales report

US stocks pulled back on Wednesday after a weak retail sales report. The S&P 500 slid 0.2% to 2989.69. The Dow Jones industrial average slipped 0.1% to 27002.52. Nasdaq lost 0.3% to 8124.18. The dollar weakening accelerated after US Census Bureau reported retail sales in September fell 0.3% over month when 0.3% increase was expected. 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, slid 0.3% to 98.01 but is higher currently. Stock index futures point to mixed openings today.

DAX gains while European indexes slip

European stock indexes ended mixed on Wednesday against the background of weak data. Both GBP/USD and EUR/USD continued climbing yesterday with Pound turning lower currently while euro higher still. The Stoxx Europe 600 slipped 0.05% led by financial shares as euro-zone final inflation came in at 0.8% after 1% gain in August. Germany’s DAX 30 rose 0.3% to 12670.11. France’s CAC 40 slid 0.1% and UK’s FTSE 100 lost 0.6% to 7167.95 as Brexit negotiators failed to reach a deal the last day of talks before a crucial European Union summit.

Hang Seng gains while Asian indexes decline

Asian stock indices are mixed today after reports Treasury Secretary Steve Mnuchin said Washington hopes President Donald Trump and China’s President Xi Jinping will sign an agreement at the Asia-Pacific Economic Cooperation summit in Chile in mid-November. Nikkei slipped 0.1% to 22451.86 despite yen resumed slide against the dollar. Chinese stocks are mixed: the Shanghai Composite Index is down 0.05% while Hong Kong’s Hang Seng Index is 0.6% higher. Australia’s All Ordinaries Index turned 0.8% lower as Australian dollar accelerated its climb against the greenback.

Brent up

Brent futures prices are edging higher today. Prices gained yesterday despite American Petroleum Institute report late Wednesday US crude inventories rose by 10.5 million barrels last week. December Brent crude added 1.2% to $59.42 a barrel on Wednesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.