Markets advance after Federal Reserve rate hike - 27.7.2023

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 0.3% Wednesday as the Federal Reserve raised its benchmark lending rate to a range between 5.25 per cent and 5.5 per cent.

EUR/USD joined GBP/USD’s slowed climbing on Wednesday while the GfK reported German consumer sentiment stabilized again in July. USD/JPY accelerated its sliding yesterday whileAUD/USD reversed its advancing with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are up currently ahead of unemployment claims and durable goods order reports at 14:30 CET today. The three main US stock indexes ended mixed on Wednesday in the narrow range from -0.1% to 0.2% as technology stocks weighed.

European stock indexes futures are up currently ahead of the European Central Bank decision at 14:15 CET today where it is widely expected the bank will raise interest rates by a quarter-point. Indexes closed lower yesterday. Asian stock indexes futures are mostly advancing today with Japan’s Nikkei index leading gains while Chinese property stocks extended gains after Politburo Monday meeting spurred hopes that more support to the sector is on the way.

Brent is retracing higher presently. Prices ended lower yesterday despite Energy Information Administration report US crude inventories fell by below expected 600,000 barrels in the last week. Amid reports Russian Urals crude has been trading at or above the $60 cap for nearly two weeks Biden administration is poised to increase communications with trading houses, tanker owners, insurers and others, reminding them that they should keep evidence showing Russian oil was bought under $60. The US oil benchmark West Texas Intermediate (WTI) futures slid 1.1% but is higher currently. Brent crude lost 0.9% to $82.92 a barrel on Wednesday.