Equities waver while Wall Street rally continued - 19.12.2023

The Dollar weakening 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, ended 0.1% lower on Monday.

EUR/USD reversed its sliding yesterday while GBP/USD slowed its retreating while the Ifo institute’s business climate index showed German business sentiment fell unexpectedly in December. Both Pound and euro are higher against the dollar currently. USD/JPY reversed its sliding on Monday while AUD/USD ended flat with the yen lower against the Greenback currently and Australian dollar higher after the minutes of the Reserve Bank’s December meeting showed that while it had considered another interest rate hike it had decided against the move in anticipation of more cues on the Australian economy.

Futures on three main US stock indexes are mixed currently with the yield on benchmark 10-year Treasury down at 3.944%. US markets closed higher on Monday with the three main stock benchmarks recording daily gains in the range from 0.0% to 0.6% while several Fed officials attempted to downplay bets that the Fed was completely pivoting away from its hawkish stance.

European stock indexes futures are rising currently after closing down on Monday led by construction and material shares. Asian indexes futures are mixed today with Japan’s Nikkei index leading gains after the Band of Japan kept short-term rates at negative levels and said it will continue with its yield curve control measures..

Brent is edging down currently. Prices rose nearly 2% on Monday as tankers reroute after a Norwegian-owned vessel was attacked in the Red Sea and oil major BP said it had temporarily paused all transit through the water. US West Texas Intermediate WTI added 1.5% but is lower currently. Brent gained 1.8% to $77.95 a barrel on Monday.