US stocks post fourth straight session of gains
US stocks ended higher on Tuesday fourth session in a row after the release of 2018 budget proposal by White House spurred expectations of progress with president Trump’s pro-growth policies like tax cuts and infrastructure investments. The dollar rebounded: 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, ended 0.4% higher at 97.355. Dow Jones industrial average rose 0.2% to 20937.91, led by Goldman Sachs (NYSE:GS) and JP Morgan shares.
The S&P 500 added 0.2% settling at 2398.42 led by financial and health-care stocks, with ten out of 11 main sectors ending higher. The NASDAQ index closed up less than 0.1% at 6138.71 in a choppy trade.
Data point to continued euro-zone expansion
European stock indices rebounded on Tuesday as euro-zone economic activity remained at a six-year high. Both the euro and British Pound weakened against the dollar. The Stoxx Europe 600 rose 0.2%. Germany’s DAX 30 gained 0.3% closing at 12659.15. France’s CAC 40 outperformed adding 0.5% while UK’s FTSE 100 ended 0.2% lower at 7485.29.
Moody's downgrades China's credit ratings
Asian stock indices are higher today as Chinese stocks pared earlier losses after Moody's Investors Service downgraded China's credit ratings on Wednesday for the first time in nearly 30 years. Moody’s said it expects the financial strength of the economy will erode in coming years as growth slows and debt continues to rise. It downgraded one notch long-term local and foreign currency issuer ratings, to A1 from Aa3.
China's Finance Ministry said the downgrade overestimated the risks to the economy and was based on "inappropriate methodology". The Shanghai Composite Index is up 0.1% while Hong Kong’s Hang Seng Index is down 0.1%. Nikkei rose 0.7% to 19742.98 as yen slide against the dollar continued. Australia’s ASX All Ordinaries added 0.1% in a choppy trade. Australian dollar eased against the greenback.
Oil up ahead of inventory data
Oil futures prices are edging higher today on expectations the Organization of the Petroleum Exporting Countries (OPEC) will decide to extend production cuts for at least another six months tomorrow.
July Brent crude closed 0.5% higher at $54.15 a barrel on London’s ICE Futures exchange on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories. S&P Global Platts analyst polls indicate a decline of 2.8 million barrels.