Markets rise ahead of US nonfarm payrolls report - 4.8.2023

The Dollar strengthening has resumed today. 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 0.2% Thursday while the Department of Labor data showed the number of Americans who sought unemployment benefits over the last week was higher than the forecast while their number rose.

EUR/USD reversed its retreating on Thursday while GBP/USD was flat while the SP Global report indicated the downturn in euro zone business activity accelerated in July. USD/JPY reversed its climbing while AUD/USD reversed its sliding with the yen lower against the Greenback currently and the Australian dollar higher still.

US stock indexes futures are up currently as the yield on benchmark 10-year Treasury notes ticked down to 4.174%. The three main stock benchmarks ended down on Thursday in the range of -0.25% to -0.1% while the ISM Services PMI report indicated US services sector activity still expanded in July, though at a slower rate.

European stock indexes are advancing currently after closing lower on Thursday with tech shares leading losses while the Bank of England brought its main interest rate up 25 basis points to 5.25%. Asian stock indexes futures are mostly higher today with Japan’s Nikkei leading gains while China's central bank announced it will flexibly use policy tools to ensure reasonably ample liquidity in the banking system.

Brent is advancing currently. Prices ended higher yesterday as Saudi Arabia said it will extend a voluntary oil output cut of one million barrels per day (bpd) for a third month to include September and Deputy Prime Minister Alexander Novak said Russia would cut oil exports by 300,000 bpd in September. The US oil benchmark West Texas Intermediate (WTI) rose 2.6% and is higher currently. Brent crude rose 2.3% to $85.14 a barrel on Thursday.