Markets bounce back after sharp losses - 1.2.2021

The Dollar strengthening is intact 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 0.03% on Friday as core Personal Consumption Expenditures index rose 0.3% over month in December after no change previous month, while Chicago Purchasing Managers' Index rose to 63.8 for January from 59.5 the previous month. Readings above 50.0 indicate industry expansion, below indicate contraction. And US pending home sales declined less than expected in December.

EUR/USD continued its climbing Friday while GBP/USD ended lower as Destatis reported German economy recorded 0.1% over quarter growth in Q4 when no change was forecast. Pound is higher against the Dollar currently while Euro is lower. AUD/USD reversed its climbing Friday while USD/JPY continued its climb with both Australian dollar and yen higher against the greenback currently.

Futures on US equity benchmarks are up currently ahead of ISM Manufacturing PMI report today at 16:00 CET. Stocks ended sharply lower Friday as hedge fund short-sellers who were betting on lower prices for stocks like GameStop, AMC Entertainment had to sell stocks where they had long positions to cover billions of dollars of losses from rallying GameStop and other shares supported by retail investor bets. The three main US stock benchmarks recorded losses ranging from 0.9% to 2%.

European stock indexes are edging higher currently after ending lower on Friday led by retail stocks. Asian indexes are mostly higher with Hang Seng Index leading the gains today despite Caixin report showing factory activity in China slowed in January.