Equities boosted after Fed confirmed rate cuts plan - 21.3.2024

The Dollar weakening has slowed 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, slid 0.5% Wednesday.

Both GBP/USD and EUR/USD reversed their sliding yesterday while European Central Bank chief Christine Lagarde signaled a rate cut in June. Both euro and Pound are lower against the dollar currently. USD/JPY ended flat while AUD/USD reversed its retreating on Wednesday with the yen lower against the Greenback currently and the Australian dollar higher still.

The US stock index futures are higher currently ahead of US Unemployment Claims and Manufacturing and Services PMI reports due at 13:30 CET and 14:45 CET today. The three main US stock indexes ended higher on Wednesday in the range from 0.9% to 1.25% with technology shares leading gains as Federal Reserve kept interest rates unchanged for a fifth consecutive meeting while policy makers maintained forecasts of three rate cuts in 2024.

European stock indexes futures are higher currently after indexes closed mixed yesterday with household goods shares leading losses. Asian stock indexes futures are up today with Hong Kong’s Hang Seng Index leading gains buoyed by technology stocks rally amid resurgent hype over artificial intelligence.

Brent is edging higher presently. Prices ended over $1 lower yesterday despite the US Energy Information Administration (EIA) report US crude stockpiles fell by above expected 1.95 million barrels while gasoline stockpiles were drawn down by larger than expected 3.3 million barrels - the seventh straight week of drawdowns. The US oil benchmark West Texas Intermediate (WTI) futures lost 1.76% but is higher currently. Brent crude fell 1.6% to $85.95 a barrel on Wednesday.