Stocks pause as Powell expected to confirm rate hikes will continue - 26.8.2022

The Dollar strengthening has resumed 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, slid 0.5% Thursday while the US Bureau of Labor Statistics reported less Americans applied for initial jobless claims last week than expected while their number declined.

Both EUR/USD and GBP/USD resumed advancing Thursday while German second quarter GDP growth was revised to 0.1% over quarter, up from an initial estimate of 0.0%. Both euro and Pound are lower against the Dollar currently. USD/JPY reversed its climbing yesterday while AUD/USD reversed its retreating with both the Australian dollar and yen lower against the Greenback currently.

US stock indexes futures are down currently ahead of Personal Consumption Expenditures (PCE) report at 14:30 CET with the yield on benchmark 10-year Treasury notes up at 3.052%. The three main US stock benchmarks closed higher yesterday recording gains in the range of 1.0% to 1.7% while data showed GDP in the second quarter contracted by 0.6%, much less than first reported.

European stock market futures are mixed today after ending marginally higher Thursday led by oil and gas shares. Asian stock indexes futures are mixed currently with Australia’s All Ordinaries leading gainers while Hong Kong tech majors rose after reports Washington and Beijing were close to striking an auditing deal.

Brent is edging up presently. Prices ended down Thursday after Iran said it had received a response from the United States to the European Union's "final" text to resurrect the nuclear agreement. The US oil benchmark West Texas Intermediate (WTI) dropped 2.5% but is higher currently. Brent crude lost 1.9% to $99.34 a barrel on Thursday.