Markets rebound on slower US inflation - 11.8.2022

The Dollar weakening has halted 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, lost 0.7% Wednesday as the annual consumer price index dipped to 8.5% in July.

GBP/USD reversed its sliding on Wednesday while EUR/USD accelerated its advancing as German final July consumer price inflation came in at 7.5% over year, roughly in line with expectations. Euro and Pound are lower against the Dollar currently. USD/JPY reversed its climbing yesterday and AUD/USD reversed its sliding with both the Australian dollar and yen higher against the Greenback currently.

The US stock index futures are up currently ahead of Bureau of Labor Statistics reports on Producer Price Index (PPI) and unemployment claims due today at 14:30 CET. The three main US stock indexes booked solid gains ranging from 1.6% to 2.9% Wednesday led by tech shares as inflation data showed annual consumer price index declined in July from a 40-year high of 9.1% the previous month.

European stock indexes futures are higher currently after closing up yesterday led by retail shares. Asian stock indexes futures are rising today with Hong Kong’s Hang Seng Index leading gains while markets in Japan are closed for a holiday.

Brent is edging lower currently as Russian state oil pipeline monopoly Transneft restarted oil flows via the southern leg of the Druzhba oil pipeline. Prices rose yesterday despite the Energy Information Administration report showing domestic crude oil inventories rose by bigger than expected 5.5 million barrels last week while consumption data showed gasoline demand was 6% lower over the past four weeks compared with the year-ago period. The US oil benchmark West Texas Intermediate (WTI) futures rose 1.6% but is lower currently. Brent crude gained 1.1% to $97.40 a barrel on Wednesday.