Equities retreat after Wall Street dipped - 3.4.2024

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 0.2% on Tuesday.

Both EUR/USD and GBP/USD reversed their retreating yesterday while data showed euro zone manufacturing activity contracted in March at a greater pace than the previous month. Both euro and Pound are lower against the dollar currently. USD/JPY reversed its advancing on Tuesday while AUD/USD reversed its sliding with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are down currently with the yield on benchmark 10-year US notes down at 4.357%. Stock indexes ended lower on Tuesday with three main stock benchmarks recording daily losses in a range from -1.0 to -0.7% while two Fed policy makers said they both thought it would be "reasonable" to cut US interest rates three times this year.

European stock indexes are mixed currently after closing lower on Tuesday with retail stocks leading losses. Asian indexes futures are mostly lower today with Hong Kong’s Hang Seng index leading losses despite data showing the expansion in the Chinese services industry picked up pace in March.

Brent is retracing lower currently ahead of ministerial panel meeting of OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers. Prices rose over $1 yesterday before the American Petroleum Institute (API) report showing US crude stockpiles fell by above expected 2.3 million barrels last week. The Energy Information Administration (EIA) will release its US inventory data at 15:30 CET today. The US oil benchmark West Texas Intermediate (WTI) added 1.7% but is lower today. Brent rose 1.7% to $88.92 a barrel on Tuesday.