US stocks decline as yield curve inversion deepened - 28.8.2019

Dollar weakens as home prices gain slows

US stock indexes pulled back on Tuesday as Treasury yield curve inversion deepened with 30-year yields slipping below those on three-month notes. The S&P 500 slid 0.3% to 2869.16. Dow Jones industrial lost 0.5% to 25777.90. The Nasdaq retreated 0.3% to 7826.95. The dollar strengthening halted as the Case-Shiller home price index growth slowed to 2.1% in June from a 2.4% gain the previous month: 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, lost 0.04% to 98.00 but is higher currently. Stock index futures point to lower market openings today.

CAC 40 leads European indexes gains

European stocks recovery continued on Tuesday as China’s State Council issued 20 directives to boost consumption by providing credit support for purchases of new energy vehicles and smart home appliances. The GBP/USD turned higher yesterday while EUR/USD continued sliding with both pairs lower currently. The Stoxx Europe 600 ended 0.5% higher. The German DAX 30 gained 0.6% to 11730.02 despite final GDP reading confirmed Europe’s largest economy contracted 0.1% in second quarter. France’s CAC 40 rose 0.7% after president Macron said on Monday US and France reached a deal on digital tax. UK’s FTSE 100 slipped 0.1% to 7089.58.

GB100 falls below MA(200) 08/28/2019 Market Overview IFC Markets chart

Australia’s All Ordinaries Index leads Asian indexes gains

Asian stock indices are mixed today. Nikkei gained 0.1% to 20479.42 as yen resumed its slide against the dollar. Chinese stocks are retreating: the Shanghai Composite Index is down 0.3% and Hong Kong’s Hang Seng index is 0.1% lower. Australia’s All Ordinaries Index extended gains 0.4% as Australian dollar’s move lower against the greenback continued.

Brent steady

Brent futures prices are steady today. The American Petroleum Institute late Tuesday report indicated US crude inventories fell by 11.1 million barrels last week. Prices rose yesterday: October Brent gained 1.4% to $59.51 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.