Markets venture up after Wall Street retreat - 21.12.2023

The Dollar strengthening has reversed 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, added 0.3% Wednesday while data showed US consumer confidence surged by most since early 2021.

Both GBP/USD and EUR/USD reversed their advancing on Wednesday as data showed UK inflation slowed more sharply than expected in November. Euro is higher against the dollar currently while Pound is lower. Both USD/JPY and AUD/USD reversed their climbing yesterday 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 -1.3% to -1.5% on mixed data as Conference Board survey showed an unexpected surge in consumer confidence in December while FedEx lowered its fiscal 2024 sales forecast, suggesting weakening demand.

European stock indexes futures are mixed currently after indexes closed higher yesterday with telecoms stocks leading gains. Asian stock indexes futures are mostly higher today with Chinese stocks defying the trend on concerns over a sluggish economic recovery in China.

Brent is extending gains presently. Prices rose yesterday despite the Energy Information Administration report of a surprise build in US crude oil inventory of roughly 2.9 million barrels in the week ended December 8 when US gasoline stocks rose by 2.7 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures gained 0.4% and is higher currently. Brent crude rose 0.6% to $79.70 a barrel on Wednesday.