Equities mixed after Wall Street rally on solid US jobs report - 7.11.2022

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, dropped 1.9% on Friday as US Bureau of Labor Statistics reported the US economy added more jobs in October than forecast while the unemployment rate ticked up.

Both EUR/USD and GBP/USD rebounded on Friday as the European Central Bank president Christine Lagarde said ECB was prepared to tighten monetary policy more aggressively if the current record-high rate of inflation persists and expectations spike. Both Pound and euro are lower against the Dollar currently. USD/JPY reversed its climbing Friday while AUD/USD reversed its retreating with both the yen and Australian dollar lower against the Greenback currently.

Futures on US equity benchmarks are down currently after US stocks closed solidly higher on Friday ending a four-session losing streak as the nonfarm report showed US economy added higher than expected 261,000 jobs in October confirming the strength of the US labor market. The three main US stock benchmarks recorded daily gains ranging from 1.26% to 1.36%.

European stock indexes futures are mixed currently after stocks closed higher on Friday led by basic resources shares while the final reading of euro zone purchasing managers’ index for October confirmed a deepening downturn against the background of rising energy and consumer prices. Asian indexes futures are advancing today with Hong Kong’s Hang Seng leading gains despite Customs General Administration of China data released earlier showing Chinese exports and imports both contracted in October and missed forecasts.

Brent is retreating today after Beijing denied it was considering easing its zero COVID-19 policy. Prices rallied Friday on hopes for China demand rebound on speculation the major importer China would soon open economy as it eases COVID-19 curbs. West Texas Intermediate (WTI) futures jumped 5% but is lower currently. Brent crude rose 2.9% to $98.57 a barrel on Friday.