Markets down after Wall Street bounce - 7.2.2024

The Dollar weakening is intact 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, slid 0.3% on Tuesday.

Both GBP/USD and EUR/USD reversed their retreating yesterday as federal statistics office Destatis reported German factory orders rose in December when a decline was expected. Both euro and Pound are higher against the dollar currently. USD/JPY reversed its advancing and AUD/USD reversed its retreating on Tuesday with both the yen and Australian dollar higher against the Greenback currently.

Futures on three main US stock indexes are lower currently as the yield on benchmark 10-year US notes remains steady at 4.092% currently. Stock indexes ended higher on Tuesday with three main stock benchmarks recording daily returns in a range from 0.1% to 0.4% while Minneapolis Fed President Neel Kashkari said the central bank is “not done yet” with inflation.

European stock indexes are down currently after closing higher on Tuesday led by oil and gas stocks. Asian indexes futures are mostly lower today with Japan’s Nikkei defying the trend amid reports President Xi Jinping would discuss the stock market with financial regulators.

Brent is edging up currently. Prices advanced yesterday before the American Petroleum Institute (API) report showing US crude stockpiles rose by 674 thousand barrels last week. The US Energy Department said domestic output would grow by 170,000 barrels per day (bpd) this year, down from the previous forecasted rise of 290,000 bpd. The Energy Information Administration (EIA) will release its US inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) rose 0.7% and is higher today. Brent added 0.7% to $78.59 a barrel.