Equities down after Wall Street pause - 10.1.2024

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, added 0.3% on Tuesday.

Both GBP/USD and EUR/USD reversed their climbing yesterday as federal statistics office Destatis reported German industrial production unexpectedly fell in November. Euro is higher against the dollar currently while Pound is lower still. USD/JPY reversed its retreating on Tuesday and AUD/USD reversed its advancing with the yen lower against the Greenback currently and Australian dollar higher.

Futures on three main US stock indexes are down currently as the yield on benchmark 10-year US notes edged up to 4.021% currently. Stock indexes ended mixed on Tuesday with three main stock benchmarks recording daily returns in a narrow range from -0.4% to 0.1% while RealClearMarkets (RCM) survey data showed US consumer sentiment improved for January.

European stock indexes are lower currently after closing marginally lower on Tuesday led by mining shares. Asian indexes futures are retreating mostly today with Japan’s Nikkei defying the trend buoyed by bets that the Bank of Japan will have to delay its plans to begin tightening its policy in 2024 after a devastating earthquake in central Japan.

Brent is extending gains currently. Brent ended up about 2% on Tuesday amid reports of closure of Libya's 300,000 barrels per day Sharara oilfield, one of its largest. The Energy Information Administration (EIA) will release its US inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) rose 2.1% and is higher today. Brent added 1.9% to $77.59 a barrel.