Markets rebound after Wall Street ends mixed - 6.12.2023

The Dollar strengthening continues currently . 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, rose 0.3% on Tuesday while the Institute for Supply Management reported US services sector activity picked up in November.

Both EUR/USD and GBP/USD continued their sliding yesterday while SP Global reported employment in euro zone dropped in November for first time in nearly three years as economic activity continues to shrink. Euro is lower against the dollar while Pound is higher currently. AUD/USD accelerated its sliding on Tuesday while USD/JPY ended flat with the yen lower against the Greenback currently and Australian dollar higher.

Futures on three main US stock indexes are up currently as the yield on benchmark 10-year US notes edged up to 4.193% currently. Stock indexes ended mixed on Tuesday with three main stock benchmarks recording daily returns in a range from -0.22% to 0.3% as data showed US job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing.

European stock indexes are higher currently after closing marginally up on Tuesday led by mining share. Asian indexes futures are rising today with Japan’s Nikkei leading gains while Chinese stocks lagged behind as ratings agency Moody’s downgraded its outlook on China’s credit to negative.

Brent is retracing up currently. Brent ended down over 1% on Tuesday ahead of American Petroleum Institute report later in the day US crude inventories rose unexpectedly by 594 thousand barrels last week. The Energy Information Administration will release its US inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) fell 1.0% but is higher today. Brent lost 1.1% to $77.20 a barrel.