Markets mixed ahead of Fed interest rate decision - 18.9.2024

The Dollar weakening 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 0.2% higher on Tuesday after a better than expected retail sales report.

Both EUR/USD and GBP/USD reversed their advancing yesterday while the ZEW Economic Sentiment Index showed German economic sentiment deteriorated slightly in September. Both Pound and euro are higher against the dollar currently. USD/JPY joined AUD/USD’s slowed climbing on Tuesday with both the yen and Australian dollar higher against the Greenback currently.

Futures on three main US stock indexes are mixed currently ahead of expected Fed rate cut decision at 22:00 CET today with the yield on benchmark 10-year US notes steady at 3.642%. Stock indexes ended mixed on Tuesday as three main stock benchmarks recorded daily returns in a range from -0.04% to 0.2% as data showed retail sales rose unexpectedly by 0.1 per cent from July to August when a decline was forecast.

European stock indexes are lower currently after closing up on Tuesday with bank shares leading gains. Asian indexes futures are mixed today with Japan’s Nikkei leading losses while data showed Japan's exports slowed sharply whereas machinery orders shrank.

Brent is retracing down currently on signs of US inventory build. Prices ended higher yesterday before data from the American Petroleum Institute showed both oil and fuel stockpiles rose last week. The Energy Information Administration (EIA) will release its US inventory data at 18:30 CET today.The US oil benchmark West Texas Intermediate (WTI) rose 1.6% but is lower currently. Brent added 1.3% to $73.70 a barrel on Tuesday.