Equities slump as bond yields march higher continues - 4.10.2023

The Dollar strengthening has paused 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 0.1% on Tuesday as Wards report indicated number of cars and trucks sold in US during the previous month rose more than expected.

Both EUR/USD and GBP/USD slowed their sliding yesterday. Both euro and Pound are higher against the dollar currently. USD/JPY reversed its advancing on Tuesday while AUD/USD slowed its sliding with both the yen and Australian dollar higher against the Greenback currently.

Futures on three main US stock indexes are lower currently as the yield on benchmark 10-year US notes is steady at 4.683% currently. Stock indexes ended solidly lower on Tuesday with three main stock benchmarks recording daily losses in the range from -1.9% to -1.3% as the JOLTS report data showed a large pickup with August job openings.

European stock indexes are down currently after a bearish session on Tuesday with utility stocks leading losses. Asian indexes futures are in red today with Japan’s   Nikkei  leading losses  after the yen breached the 150-per-dollar level in the London afternoon on Tuesday before suddenly jumping to 147.3.

Brent is still lower but still above $90 currently while the Organization of the Petroleum Exporting Countries and allies, or OPEC+, is expected to keep output policy unchanged today. Oil prices rebounded on Tuesday ahead of American Petroleum Institute data US crude oil stockpiles fell last week by about 4.2 million barrels. The Energy Information Administration will release its US inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) rose 0.5% but is lower today. Brent gained 0.2% to $90.92 a barrel.