Equities rebound as US yields ease - 14.4.2022

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, lost 0.5% Wednesday.

Both GBP/USD and EUR/USD reversed their sliding Wednesday after Office for National Statistics data showing UK inflation came in at an annual 7% in March, its highest since for 30 years. Both Pound and euro are up against the Dollar currently. USD/JPY resumed its climbing yesterday while AUD/USD ended flat with the Australian dollar little changed against the Greenback currently and yen higher.

The US stock index futures are up currently ahead of retail sales report today due at 14:30 CET. The three main US stock indexes booked gains ranging from 1.1% to 2.0% Wednesday led by tech shares while Federal Reserve Governor Christopher Waller supported raising interest rates by half a percentage point next month at the upcoming May 3-4 meeting.

European stock indexes are mixed currently after ending mixed Wednesday with food and beverages stocks leading losses. European Central Bank is meeting today with ECB Press Conference scheduled for 14:30 CET and traders waiting to see whether the major central bank will be as hawkish as Canadian and New Zealand central banks which raised rates yesterday. Asian stock indexes are mostly up today with Nikkei leading gains while Chinese shares getting support from Beijing's announcement of more policy support including cutting the reserve requirement ratio.

Brent is retreating currently. Prices rose yesterday despite the US Energy Information Administration report of a surprise US crude stockpiles build up of 9.4 million barrels last week. The US oil benchmark West Texas Intermediate (WTI) futures jumped 3.7% but is lower currently. Brent crude rallied 4% to $108.78 a barrel on Wednesday.