Equities mixed after Fed rate hike - 23.3.2023

The Dollar weakening continues 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 Federal Reserve hiked interest rates to 5% from 4.75%.

EUR/USD accelerated its advancing while GBP/USD reversed its retreating on Wednesday as UK inflation data showed consumer price inflation rose from 10.1% in January to 10.4% in February. Euro and Pound are higher against the Dollar currently. USD/JPY reversed its climbing and AUD/USD reversed its retreating yesterday with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are higher currently ahead of Department of Labor report on unemployment claims scheduled for 14:30 CET today. The three main US stock indexes ended in red on Wednesday recording daily losses in a narrow range from 1.6% to 1.65% after Federal Reserve unveiled a ninth straight interest rate hike but hinted at a potential pause in its rate hike cycle in the wake of a banking crash.

European stock indexes futures are lower currently after closing marginally higher yesterday with food and beverage stocks leading gains. The Bank of England will announce its interest rate decision at 13:00 CET today with investors expecting the BOE to raise rates by 25 basis point after higher inflation data. Asian stock indexes futures are mostly lower today with Chinese stocks defying the regional trend.

Brent is edging up presently. Prices ended solidly higher yesterday despite Energy Information Administration report US crude inventories rose unexpectedly by 1.1 million barrels in the last week. The US oil benchmark West Texas Intermediate (WTI) futures rose 1.8% and is higher currently. Brent crude gained 1.8% to $76.69 a barrel on Wednesday.