October Daily Review - 06/10

 

1. U.S. stocks fell marginally at the open on Tuesday as investors booked profits after the S&P 500's best 5-day run since 2011.

The Dow Jones industrial average (DJI) fell 13.56 points, or 0.08 percent, to 16,762.87. The S&P 500 (SPX) lost 2.38 points, or 0.12 percent, to 1,984.67 and the Nasdaq composite (IXIC) dropped 13.95 points, or 0.29 percent, to 4,767.31.

2. Oil prices rose on Tuesday, heading for the first three-day gain in five weeks, on signals that the world's biggest producers of crude may act jointly to support prices, which have halved over the past year.

Brent crude, the global oil benchmark traded up 75 cents at the $50.00 a barrel milestone for the first time in two weeks by 1243 GMT, or 1.4 percent day on day. It rose 2.3 percent on Monday.

3. The euro pushed higher against the weaker dollar on Tuesday as diminished expectations for a rate hike by the Federal Reserve this year pressured the greenback lower.

EUR/USD rose 0.46% to 1.1237 from 1.1186 late Monday. The dollar remained on the back foot after Friday’s unexpectedly weak U.S. jobs report prompted investors to abandon expectations for a rate hike by the Fed before the end of 2015.

4. New Volkswagen (XETRA:VOWG) Chief Executive Matthias Mueller warned staff on Tuesday to brace for "massive cutbacks" in response to the diesel emissions scandal that has hammered the company's stock and reputation.

Speaking to employees at VW headquarters in Wolfsburg, Mueller, who replaced longtime CEO Martin Winterkorn late last month, said all the company's investment plans would be put under review and an existing cost-cutting program accelerated, cautioning, "this will not be painless".

5. U.S. exports took a hit from an ailing global economy in August and imports from China surged, fueling the largest expansion of America's trade deficit in five months. The Commerce Department said the trade deficit grew by 15.6% to $48.3 billion in August.

Overall exports fell 2% to their lowest level since October 2012. Imports rose 1.2%, even though America bought the least petroleum from abroad since September 2004.

The data illustrates the U.S. economy's vulnerabilities to a strong dollar and weak demand in foreign markets, which could impose further caution on the Federal Reserve's plans to hike interest rates.

 

 

 

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