Markets resume advancing after Dow booked record close - 6.5.2021

The Dollar weakening is intact currently ahead of the US Labor Department report at 14:30 CET expected to show 540 thousand Americans sought unemployment benefits over the last week, down from 553 thousand the previous week. 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, slipped less than 0.1% Wednesday as the Institute for Supply Management reported its index of service sector activity was at 62.7 in April, well into expansionary territory but slightly lower than the month before.

EUR/USD continued retreating yesterday while GBP/USD reversed its declining despite Markit report its final composite PMI reading for euro-zone for April came in at 53.8 compared 53.2 in March. Anything above 50 represents expansion. Euro is on the rise against the Dollar currently while Pound is lower. USD/JPY reversed its climbing Wednesday while AUD/USD reversed its sliding with yen lower against the Greenback currently and Australian dollar higher.

The US stock futures are up currently with the 10-year US Treasuries yield little changed at 1.582% ahead of Federal Reserve Bank of New York president Williams speech today at 15:00 CET today. The three main US stock indexes booked returns ranging from -0.4% to 0.3% Wednesday as pharmaceutical shares took a hit after US administration announced its support for a global waiver on patent protections for Covid-19 vaccines.

European stock indexes are higher currently after ending higher Wednesday with basic resources shares leading gains as Markit’s report indicated euro-zone business activity gathered pace in April, fueled by an expansion in the bloc’s dominant services sector. Asian stock indexes are mostly rising  today with Shanghai Composite leading losses as China “indefinitely” suspended all activity under a China-Australia Strategic Economic Dialogue after reports couple of days ago Australia was reviewing the 99-year lease of Darwin port in its north to a Chinese firm.