Stocks retreat after Wall Street dip - 7.12.2023

The Dollar strengthening has halted 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, edged up 0.2% Wednesday while ADP National Employment report showed private payrolls increased by 103,000 jobs in November, below economists’ expectation of 130,000.

Both GBP/USD and EUR/USD slowed their sliding on Wednesday while SP Global reported a decline in UK construction business activity for the third consecutive month in November. Both Pound and euro are higher against the dollar currently. USD/JPY resumed its advancing yesterday while AUD/USD slowed its sliding with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are higher currently ahead of unemployment claims report at 14:30 CET today. The three main US stock indexes ended lower on Wednesday in the range from -0.6% to -0.2% as weak ADP employment report indicated US economy is cooling.

European stock indexes futures are down currently after indexes closed higher yesterday led by auto shares. Asian stock indexes futures are lower today with Japan’s Nikkei leading losses while yen strengthened as Bank of Japan Governor Kazuo Ueda discussed options for a potential pivot from negative interest rates.

Brent is edging higher presently. Prices fell nearly 4% yesterday while the Energy Information Administration reported a 4.6 million barrels drop in US crude oil inventory when US gasoline stocks rose by 5.4 million barrels last week. The US oil benchmark West Texas Intermediate (WTI) futures fell 4.1% but is higher currently. Brent crude lost 3.8% to $74.30 a barrel on Wednesday, lowest settlement since June.