U.S. stocks fall third session in a row
U.S. stock indices closed lower third session in a row as energy stocks fell dragged by a slump in oil prices and strong employment data reinforced expectations of a rate hike next week. The dollar further strengthened: the live dollar index data show the ICE U.S. dollar index, a measure of the dollar’s strength against a basket of six rival currencies, closed up 0.3% at 102.112.
The S&P 500 lost 0.2% settling at 2362.98 led by energy stocks which offset gains in consumer discretionary and health care sectors. The Dow Jones industrial average fell 0.3% to 20855.73 led by Caterpillar (NYSE:CAT) and Chevron (NYSE:CVX), down 2.8% and 1.97% respectively. The NASDAQ index managed to record a gain closing up less than 0.1% at 5837.55.
Optimism about U.S. economy lifts European stocks
European stocks closed higher on Wednesday with market sentiment buoyed by stronger than expected private sector jobs report in U.S. Both the euro and British pound continued the slide against the dollar. The Stoxx Europe 600 rose 0.1% in a choppy session. Germany’s DAX 30 gained less than 0.01% to 11967.31. France’s CAC 40 added 0.1% while UK’s FTSE 100 index slipped 0.1% to 7334.61.
Asian stocks down
Asian stocks are mostly lower today after a slump in oil prices as investors await the ECB interest rate decision and U.S. monthly jobs report Friday. Nikkei snapped the four session losing streak today closing 0.3% higher at 19318.58 on the back of weaker yen against the dollar. Chinese stocks are lower after data showed consumer prices were weaker than expected rising 0.7% in February instead of expected 1.7% while producer prices rose at the fastest pace since 2008. Shanghai Composite Index is 0.7% lower while Hong Kong’s Hang Seng Index is down 1.1%. Australia’s ASX All Ordinaries is down 0.3% with the Australian dollar little changed against the dollar.
Oil prices rebound after sharp U.S. stockpile build
Oil futures prices prices are recovering today after official data showed U.S. crude stockpiles rose by 8.2 million barrels last week when a build of just 2 million barrels was expected. U.S. inventories hit a record level of 528.4 million barrels after ninth climb in a row as U.S. crude production last week reached a more than one-year high. May Brent crude fell 5% to $53.11 a barrel on Wednesday on London’s ICE Futures exchange.