Markets advance despite Fed move to start tapering - 4.11.2021

The Dollar strengthening has resumed currently ahead of the US Labor Department report at 13:30 CET expected to show 273 thousand Americans sought unemployment benefits over the last week, down from 281 thousand the previous week. 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 0.3% Wednesday.

Both EUR/USD and GBP/USD reversed their sliding on Wednesday as Eurostat reported euro zone unemployment fell to 7.4% in September from 7.5% in August, in line with expectations. Both pairs are lower currently. Both USD/JPY and AUD/USD resumed their climbing Wednesday with both the Australian dollar and yen lower against the Greenback currently.

The US stock index futures are steady currently after all three major indices ended at fresh all-time highs for the fourth straight day Wednesday. The three main US stock indexes booked gains ranging from 0.3% to 1% as strong readings on Institute for Supply Management Services PMI and data payroll service firm ADP private businesses employment underpinned investor confidence.

European stock indexes are mixed currently after ending up Wednesday led by mining shares. Investors will be watching closely the Bank of England policy decision at 13:00 CET today which may kick off a rate hike cycle though general expectations are the bank will stand pat. Asian stock indexes are mostly rising today with Nikkei leading gainers.

Brent is inching down currently after news Iran and world powers agreed to resume nuclear talks this month that could lead to the removal of US sanctions on Iranian oil, increasing global supplies. Prices ended down Wednesday after the US Energy Information Administration reported domestic crude stockpile rose by bigger than expected 3.3 million barrels last week. The OPEC+ is meeting later today where the issue of the volume of production expansion is to be discussed. However, analysts say signs are the group will stick with its current plans. The US oil benchmark West Texas Intermediate (WTI) futures lost 3.6% and is lower currently. Brent crude declined 3.2% to $81.99 a barrel on Wednesday.