Global stocks fall after weak Chinese data - 5.7.2023

The Dollar strengthening has reversed 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 0.2% on Tuesday.

EUR/USD reversed its advancing and GBP/USD reversed its sliding yesterday while the federal statistics office Destatis reported German trade surplus declined in May. Euro is higher against the dollar currently while Pound is lower. USD/JPY reversed its climbing Tuesday while AUD/USD accelerated its advancing with both yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are down currently ahead of release of Federal Reserve June meeting minutes later today. The yield on benchmark 10-year US notes has edged down to 3.857% currently. Stock indexes in US ended up on Monday, with three main stock benchmarks recording daily gains in the narrow range from 0.03% to 0.21%.

European stock indexes are falling currently after a bullish session on Tuesday with health care shares leading gains. Asian indexes are down today with Hong Kong’s Hang Seng index leading losses as Caixin Services PMI survey showed the services sector, which has rebounded strongly after the lifting of lockdowns, expanded at the slowest pace in five months in June.

Brent is lower today. Brent rose yesterday after Saudi Arabia on Monday said it would extend its voluntary output cut of 1 million barrels per day (bpd) to August. Meanwhile Russia and Algeria volunteered to lower their August output and export levels by 500,000 bpd and 20,000 bpd, respectively. Oil prices ended lower on Tuesday. The US oil benchmark West Texas Intermediate (WTI) futures edged up. Brent rose 2.1% to $76.25 a barrel.