Stocks fall on China harsh trade talk - 8.10.2019

Dollar strengthening resumed

US stocks pulled back on Monday after reports the Chinese Commerce Ministry will not make “changes to their laws to protect intellectual property” while willing to strike a deal with US. The S&P 500 finished 0.5% lower at 2938.79. Dow Jones industrial lost 0.4% to 26478.02. The Nasdaq composite slid 0.3% to 7956.29. The dollar strengthening resumed: 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, rose 0.2% to 98.98 but is lower currently. Stock index futures point to lower openings today.

DAX posts biggest gain among European indexes

European stocks extended gains on Monday despite weak economic data. EUR/USD joined GBP/USD’s slide yesterday with euro turning higher currently while Pound still lower. The Stoxx Europe 600 index ended 0.7% higher led by chemicals and energy shares. The DAX 30 rose 0.7% to 12097.43 despite report German industrial orders for August fell by more than expected on weaker domestic demand. France’s CAC 40 added 0.6% and UK’s FTSE 100 gained 0.6% to 7197.88 as Prime Minister Boris Johnson on Sunday reiterated his intention for the UK to leave the EU on October 31.

Nikkei leads Asian indexes gains as Japan signs trade deal with US

Asian stock indices are gaining today. Nikkei rose 1% to 21587.78 as Japan on Monday signed a limited trade deal with US returning US farmers benefits they lost when Trump pulled the US out of the Trans-Pacific Partnership in 2017. Markets in China are rising despite US blacklisting 28 Chinese public security bureaus and companies on Monday by adding them to the so-called Entity List: the Shanghai Composite Index is up 0.3% and Hong Kong’s Hang Seng Index is 0.3% higher. Australia’s All Ordinaries Index added 0.5% despite resumed Australian dollar climb against the greenback.

Brent up

Brent futures prices are edging higher today after marginal decline Monday despite OPEC report its output fell in September 1.48 million barrels a day from August: December Brent crude closed 2 cents lower at $58.35 a barrel on Monday.