Global stocks advance as House recalled from summer recess - 17.8.2020

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, slipped 0.1% Friday as the Census Bureau reported US retail sales rose below-expected 1.2% over month in July instead of a forecast of a 2% increase. Both GBP/USD and EUR/USD continued their climbing Friday despite European Union statistics agency Eurostat’s second reading of gross domestic product (GDP) confirming that the euro zone recorded a 12.1% contraction in GDP in the second quarter, with both pairs higher currently. USD/JPY turned lower while AUD/USD reversed its sliding on Friday with the dynamics intact for both pairs currently despite Japan’s report the world’s third-largest economy shrank 27.8% from a year earlier in the three months ending in June.

US equity markets are rising currently ahead of National Association of Home Builders Housing Market Index report today at 18:00 CET. The earnings season is winding down with the major retailers reporting quarterly results this week including Walmart, Home Depot and Kohls. The three main US stock indexes recorded weekly gains ranging from 0.1% to 1.8% last week. European stock indexes are higher currently. Asian indexes are mostly higher today with Nikkei retreating as Japan reported quarterly decline of 7.8% in second quarter.

Brent is retracing higher today after retreat Friday following International Energy Agency monthly report Thursday forecasting a 2020 global oil demand to contract by 8.1 million barrels a day to 91.9 million barrels a day, year over year. Oil prices ended lower last session. The US oil benchmark West Texas Intermediate (WTI) futures are lower currently after September WTI fell 0.5% Friday. October Brent crude slid 0.4% to $44.80 a barrel on Friday.