Markets up as Wall Street recovers before Fed meeting - 3.5.2022

The Dollar strengthening has paused 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 0.4% on Monday despite Institute for Supply Management report US manufacturing sector expansion unexpectedly slowed in April.

Both GBP/USD and EUR/USD resumed their sliding Monday after Germany’s federal statistics office Destatis report German retail sales unexpectedly fell in March. Both are steady currently. AUD/USD continued retreating yesterday while USD/JPY resumed advancing with both the yen and Australian dollar higher against the Greenback currently after the Reserve Bank of Australia hiked its interest rates for the first time since 2010 - to 0.35% from 0.10%.

Futures on three main US stock indexes are up currently with the yield on benchmark 10-year Treasury notes inching down to 2.987%. US stock market rebounded yesterday as investors bought beaten down tech shares. The three main US stock index benchmarks booked daily gains in the range of 0.3% to 1.6% Monday led by tech shares.

European stock indexes are up currently after closing solidly lower Monday in thin trading with UK’s market closed for a public holiday. Asian indexes are mostly up today with Japanese and Chinese markets closed for a holiday.

Brent is edging lower currently. Prices rebounded yesterday amid reports the European Union is leaning toward banning Russian oil imports by the end of the year. US West Texas Intermediate WTI added 0.5% but is lower currently. Brent gained 0.4% to $107.58 a barrel on Monday.