US markets calm despite rising inflation
US stocks advanced on Wednesday despite strong January inflation report. The dollar weakness persisted: 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, fell 0.8% to 88.978. The S&P 500 rallied 1.3% to 2698.63 led by financial and technology shares. The Dow Jones Dow Jones Industrial Average rose 1% to 24893.49. Both Dow and SP500 recorded fourth consecutive gain. Nasdaq composite index jumped 1.9% to 7143.62. Index futures indicate higher openings today.
European indices follow Wall Street lead
European stock indices rebounded on Wednesday as market sentiment got a boost from a bounce on Wall Street overnight. Both the euro and the British Pound added to gains against the dollar. The Stoxx Europe 600 closed 1.1% higher. Germany’s DAX 30 gained 1.2% settling at 12339.16. France’s CAC 40 rose 1.1% and UK’s FTSE 100 advanced 0.6% to 7213.97. Indices opened 0.3%-0.8% higher today.
Asian markets rally
Asian stock indices are rising today. Nikkei ended 1.5% higher at 21464.98 despite unrelenting yen gains against the dollar. China’s markets are closed for Lunar New Year holiday, joining Taiwan. Hong Kong’s Hang Seng Index is up 1.6%. Australia’s ASX All Ordinaries added 1.2% despite Australian dollar continued advance against the greenback on solid job growth.
Brent higher on smaller US crude inventories rise
Brent futures prices are gaining today on weak dollar and Saudi statement the biggest OPEC producer would be sticking with the policy to withhold production throughout 2018. Prices fell yesterday after the US Energy Information Administration report crude inventories rose less than expected - 1.8 million barrels last week, while the American Petroleum Institute had forecast 3.9 million barrels increase. April Brent crude rose 2.6% to $64.36 a barrel on Wednesday.