Equities dip ahead of Fed chair Powell’s speech - 19.10.2023

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, rose 0.3% Wednesday.

EUR/USD joined GBP/USD’s accelerated sliding on Wednesday while European Union statistics agency Eurostat confirmed euro zone inflation slowed markedly from August. Both euro and Pound are lower against the dollar currently. USD/JPY slowed its climbing yesterday while AUD/USD reversed its advancing with the yen little changed against the Greenback currently and the Australian dollar lower still.

The US stock index futures are extending losses currently ahead of US unemployment claims data at 14:30 CET today. The three main US stock indexes ended lower on Wednesday in the range from -1.6% to -1.0% as the yield on the benchmark 10-year US Treasury note rose above 4.9 per cent for the first time since 2007.

European stock indexes futures are down currently after indexes closed lower yesterday with mining stocks leading losses. Asian stock indexes futures are in red today with Hong Kong’s Hang Seng Index leading losses as the deadline for a crucial offshore coupon payment by China's leading real estate developer Country Garden passed this week with no signs that it had been honored.

Brent is retreating presently as US eased sanctions on Venezuela's oil sector in response to a deal reached between the government and opposition parties for the 2024 election. Intraday prices rose about 2% yesterday while US Energy Information Administration (EIA) reported US crude stockpiles fell 4.5 million barrels last week ended October 13. The US oil benchmark West Texas Intermediate (WTI) futures rose 1.9% but is lower currently. Brent crude gained 1.8% to $91.50 a barrel on Wednesday.