Equities mixed after smaller Fed rate hike - 2.2.2023

The Dollar weakening is intact 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, fell 0.5% Wednesday as Federal Reserve raised interest rates by 25 basis points following a string of 50 basis points hikes at previous meetings.

GBP/USD joined EUR/USD’s accelerated climbing on Wednesday while the Eurostat reported euro zone inflation fell for a third straight month as energy prices continue to fall in January. Euro and Pound are higher against the Dollar currently. USD/JPY accelerated its declining while AUD/USD reversed its sliding yesterday with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are mixed currently ahead of Department of Labor report on unemployment claims scheduled for 14:30 CET today. The three main US stock indexes ended higher on Wednesday recording daily returns in the range from 0.02% to 2.0% after the Federal Reserve enacted a smaller interest rate hike.

European stock indexes futures are up currently after closing lower yesterday with healthcare stocks leading losses. Asian stock indexes futures are mostly retreating today with Japan’s Nikkei leading losses.

Brent is edging down presently. Prices ended lower yesterday after Energy Information Administration report US crude inventories rose by above-expected 4.1 million barrels in the last week to 452.7 million barrels. At the same time the producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia kept their output policy unchanged. The US oil benchmark West Texas Intermediate (WTI) futures fell 3.1% and is lower currently. Brent crude lost 3.1% to $82.84 a barrel on Wednesday.