Wall Street to open higher after Powell says 50-basis points likely appropriate - 13.5.2022

The Dollar strengthening 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, rose 0.7% Thursday while the US Bureau of Labor Statistics reported wholesale prices increases, as indicated by Producer Price Index data, eased in April compared with the prior month, but still were 11 percent higher than a year ago.

Both EUR/USD and GBP/USD continued their retreating Thursday as Office for National Statistics reported UK economy shrank by 0.1% in March but expanded by 0.8% for the first quarter of 2022. Both euro and Pound are up against the Dollar currently. AUD/USD resumed its sliding yesterday while USD/JPY accelerated its retreating with the yen lower against the Greenback currently and Australian dollar higher.

US stock indexes are up currently after the Senate confirmed Powell to a second four-year term as Fed chief Thursday and San Francisco Fed President Mary Daly also reinforced expectations for half-point hikes in June and July. The three main US stock benchmarks closed mixed after a choppy session yesterday, recording daily returns in the range of -0.33% to +0.06% with two of the three indices in the red while the tech-rich Nasdaq Composite Index ended marginally higher.

European stock markets are recovering today after closing lower Thursday, led by basic resources shares. Asian stocks are rising today with Hong Kong’s Hang Seng index leading gains.

Brent is inching up presently. Prices ended mixed Thursday while the European Union is still hammering out details of the Russian embargo, which needs unanimous support. The vote has been delayed as Hungary opposes the ban because it would be too disruptive to its economy. The US oil benchmark West Texas Intermediate (WTI) gained 0.4%. Brent crude slipped 0.06% to $107.45 a barrel on Thursday.