Equities rise after US growth upgrade - 30.11.2023

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, edged up 0.1% Wednesday while the Beige Book report of Federal Reserve showed that on balance, US economic activity slowed since the previous report.

Both GBP/USD and EUR/USD reversed their climbing on Wednesday while federal statistics office Destatis reported German inflation on an EU-harmonized basis slowed significantly more than expected in November. Pound is higher against the dollar currently and euro is lower still. AUD/USD joined USD/JPY’s slowed sliding with the yen little changed and the Australian dollar higher against the Greenback currently.

The US stock index futures are higher currently ahead of October inflation report at 14:30 CET today. The three main US stock indexes ended mixed on Wednesday in the narrow range from -0.16% to 0.14% as the Bureau of Economic Analysis upgraded US economic growth in the third quarter.

European stock indexes futures are mixed currently after indexes closed higher yesterday after data showed German inflation on an EU-harmonized basis slowed to 2.3% in November, significantly more than the 2.6% forecast. Asian stock indexes futures are higher today with Japan’s Nikkei leading gains while purchasing managers index data showed that Chinese manufacturing activity contracted more than expected in November.

Brent is edging higher presently. Prices rose nearly 2% yesterday on expectations of fresh supply cuts at OPEC+ meeting today while the Energy Information Administration reported a surprise build in US crude oil and distillate fuel stocks last week. The US oil benchmark West Texas Intermediate (WTI) futures rose 1.9% and is higher currently. Brent crude added 1.7% to $83.10 a barrel on Wednesday.