Equities rebound after Fed officials’ dovish comments - 10.10.2023

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, ended flat on Monday.

EUR/USD and GBP/USD halted their climbing on Monday while Sentix reported investor confidence in the euro zone declined only marginally in October. Both euro and Pound are lower against the dollar currently. USD/JPY reversed its climbing yesterday while AUD/USD accelerated its advancing with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are up currently with the yield on benchmark 10-year Treasury down at 4.645%. US markets closed higher again on Monday with the three main stock benchmarks recording daily gains in the range from 0.4% to 0.6% as Dallas Fed president Lorie Logan said "there may be less need to raise the fed funds rate" following a rise in long-term interest rates.

European stock indexes futures are rising currently after closing lower on Monday with travel and leisure shares leading losses. Asian indexes futures are rising today with Japan’s Nikkei leading gains while China's largest private property developer Country Garden Holdings warned that it might not be able to meet all of its offshore payment obligations when due or within the relevant grace periods.

Brent is little changed currently. Prices ended solidly higher on Monday as military clashes between Israel and the Palestinian Islamist group Hamas ignited fears that escalating conflict could hit oil supply from the Middle East. US West Texas Intermediate WTI jumped 4.3% and is little changed currently. Brent rallied 4.2% to $88.15 a barrel on Monday.