Markets waiver ahead of Powell speech - 1.12.2023

The Dollar strengthening has halted today. 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 0.6% higher on Thursday as New York Fed president John Williams reiterated he would not rule out the possibility of further rate hikes if inflation fails to continue to moderate.

Both EUR/USD and GBP/USD accelerated their sliding on Thursday as preliminary Eurostat data showed euro zone inflation came in at 2.4% on an annual basis in November, lower than the 2.7% expected. Both euro and Pound are higher against the dollar currently. USD/JPY reversed its sliding yesterday and AUD/USD slowed its retreating with the Australian dollar higher against the Greenback currently and the yen lower still.

US stock indexes futures are mixed currently as the yield on benchmark 10-year Treasury notes edged down to 4.292%. The three main stock benchmarks ended mixed in a range of - 0.2% to 1.5% as Personal Consumption Expenditures (PCE) data showed US inflation exhibits some stickiness through October.

European stock indexes are higher currently after closing higher on Thursday led by oil and gas shares. Asian stock indexes futures are mostly lower today with Hong Kong’s Hang Seng index leading losses despite China Caixin Manufacturing PMI private survey showing an unexpected rebound in Chinese manufacturing activity in November.

Brent is extending losses currently. The international oil benchmark retreated more than 2% yesterday after the Organization of the Petroleum Exporting Countries and allies including Russia agreed to voluntary oil output cuts approaching 2 million barrels per day for the first quarter next year which fell short of market expectations. West Texas Intermediate (WTI) lost 2.4% and is lower currently. Brent futures tumbled 2.4% to $80.86 a barrel on Thursday.