Concerns over global trade uncertainty persist - 4.9.2018

US markets poised to open higher

US stock market was closed on Monday for Labor Day holiday. Stocks ended essentially flat Friday as US and Canada talks ended without a deal, preserving global trade uncertainty. The S&P 500 ended the week 0.9% higher and gained 3% for the month. The dollar strengthening slowed: live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, added 0.1% to 95.112 and is higher currently. Markets will reopen today after 3-day weekend and futures on three main US stock indices rose yesterday and point to higher openings today.

DAX 30 opens higher

European stocks turned higher on Monday. The GBP/USD continued its slide after EU negotiator Michel Barnier's critical comments about UK Prime Minister Theresa May’s Brexit plan. The EUR/USD turned higher but both pairs are moving lower currently. The Stoxx Europe 600 index gained less than 0.1%. The DAX 30 lost 0.1% to 12346.41 while France’s CAC 40 gained 0.1%. UK’s FTSE 100 rose 1% to 7504.60. Indices opened 0.1% - 0.4% higher today.

Asian indices edge higher

Asian stock indices are mostly higher today. Nikkei lost 0.1% to 22696.90 despite accelerated yen slide against the dollar. Chinese stocks are higher: the Shanghai Composite Index is up 1.1% and Hong Kong’s Hang Seng Index is 1% higher. Australia’s All Ordinaries Index extended losses 0.3% despite the Australian dollar turn lower against the greenback.

Brent gains continue

Brent futures prices are edging higher today as many banks including Barclays of UK, France’s BNP Paribas revised upward their 2019 average price forecast due to expected output shortage from Iran sanctions. Prices extended gains yesterday: October Brent crude settled 0.6% higher at $78.03 a barrel on Monday.