Global equities’ retreat intact - 24.9.2020

The Dollar strengthening continues currently ahead of the US Labor Department report at 16:30 CET expected to show 845 thousand Americans likely sought unemployment benefits over the last week, ahead of Fed chair Powell’s testimony before the Senate Banking Committee at 18:00 CET . 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 0.4% Wednesday despite a decline in Markit’s composite purchasing managers index flash reading to 54.4 in September from 54.6 in the prior month, signaling a slower pace of growth, while House Price Index rose to 1% over month in July from 0.4%. Both EUR/USD and GBP/USD continued sliding yesterday despite Markit flash eurozone manufacturing purchasing managers index’s rise to 53.7 from 51.7, while the services PMI dropped to 47.6 from 51.9 in September. Both pairs are lower currently. AUD/USD continued climbing while USD/JPY kept sliding yesterday with the dynamics reversed for AUD/USD currently.

Futures on three main US stock indexes are down currently after tumbling on Wednesday as the Federal Reserve speakers confirmed interest rates would be kept on hold through to at least 2023 until inflation reaches 2% sustainably, though warning US economy was far from recovery. The three main US stock indexes recorded losses ranging from 1.9% to 3.0%. European stock indexes are mixed currently after advancing Wednesday despite a decline in euro-zone composite purchasing managers index to 50.1 in September from 51.9 in August. Both pairs are lower currently. Asian indexes are down today led by Hong Kong’s Hang Seng Index .

Brent is pulling back today after reports Iraq expects to reach an agreement soon with the OPEC+ group over increasing Iraq's crude oil exports. US Energy Information Administration reported US crude inventory fell by 1.6 million barrels last week. Prices ended higher Wednesday. The US oil benchmark West Texas Intermediate (WTI) futures gained: November WTI rose 0.3% but is lower currently. November Brent crude closed 0.1% higher at $41.77 a barrel on Wednesday.