Markets regained some composure after a weak start boosted by gains in the financial sector. Gold drifted down -0.41% along with investor sentiment about the global macroeconomic outlook and oil price collapsed on data of an increase in US stockpiles.
Energy shares were a drag on indices with Newfield Exploration down -6.95% to $28.90, Devon Energy falling -5.84% to $31.92 and Anadarko Petroleum -5.86% to $47.17.
Data from US Energy Information Administration indicated that stockpiles have increased over last nine weeks.
The S&P 500 rose +0.16% and NASDAQ +0.36% while the Dow notched up a gain of +0.18%. Financials were among the biggest gainers with Intercontinental Exchange up 3.36% to $63.62 and Goldman Sachs rose +0.58% to $215.78.
- Dow 21,173.69 +0.18%
- S&P 500 2,433.14 +0.16%
- NASDAQ 6,297.38 +0.36%
- Russell 2000 1,396.67 +0.13%
- NYSE Composite 11,667.73 -0.03%
- Gold 1,287.90 -0.41%
- Oil WTI $45.80 +0.17%
- 10-year yield 2.18% +0.03%
Elsewhere, the slide in energy prices is already feeding into the European Central Bank's inflation outlook which is widely expected to be trimmed at the meeting on Thursday.
Anonymous sources according to Bloomberg say that consumer price growth is now at 1.5% for 2017, 2018 and 2019 compared to the 1.7%, 1.6% and 1.7% forecast in March.
Economic growth is also projected to be revised upwards. The market sees the cut as a signal that the ECB will take a less aggressive tone in its long-awaited policy decision and expect policymakers to say the risks to economic growth is balanced.
Meanwhile, the pound rose against the dollar ahead of tomorrow's vote in the UK to $1.30. The worst outcome for investors according to Viraj Patel, ING FX strategist, is a hung parliament with sterling potentially plunging to a low come Friday of $1.20.