Stocks sag ahead of US markets reopening - 16.1.2024

The Dollar strengthening is intact 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, ended 0.2% higher on Monday.

EUR/USD ended flat while GBP/USD continued its sliding on Monday while federal statistics office Destatis reported German economy contracted 0.3% in 2023. Both Pound and euro are lower against the dollar currently. USD/JPY reversed its retreating and AUD/USD accelerated its sliding yesterday with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are down currently with the yield on benchmark 10-year Treasury up at 3.999%. US markets closed mixed on Friday with the three main stock benchmarks recording daily returns in the narrow range from -0.3% to 0.1%.

European stock indexes futures are lower currently after closing down on Monday led by household goods shares. Asian indexes futures are retreating today with Hong Kong’s Hang Seng index leading losses ahead of Chinese gross domestic product data for the fourth quarter due tomorrow which are expected to have exceeded the government’s 5% annual target.

Brent is edging down currently. Prices retreated yesterday despite continuing tensions in Middle East as an anti-ship missile fired by Houthi militants struck a Marshall Islands-flagged US-owned and operated container ship on Monday. There was no settlement for the US West Texas Intermediate WTI   yesterday due to the US Martin Luther King Day holiday. Brent lost 0.2% to $78.15 a barrel on Monday.