Equities advance ahead of US inflation report - 12.7.2023

The Dollar weakening 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, lost 0.3% on Tuesday.

Both EUR/USD and GBP/USD continued their advancing yesterday while the ZEW indicator showed Economic Sentiment is shifting even more noticeably into negative territory in July. Both euro and Pound are higher against the dollar currently. USD/JPY persisted its sliding Tuesday while AUD/USD reversed its retreating with yen higher against the Greenback currently and Australian dollar little changed.

Futures on three main US stock indexes are up currently ahead of release of US June inflation data later today. The yield on benchmark 10-year US notes has edged down to 3.952% currently. Stock indexes extended gains on Monday, with three main stock benchmarks recording daily gains in the range from 0.6% to 0.9%.

European stock indexes are rising currently after a bullish session on Tuesday with travel and leisure shares leading gains. Asian indexes are mostly advancing today with Japan’s Nikkei defying regional trend.

Brent is extending gains today. Oil prices rose yesterday after the US Energy Information Administration (EIA) projected global crude oil demand will rise from 99.4 million barrels per day (bpd) in 2022 to 101.2 million bpd in 2023 and 102.8 million bpd in 2024. The US oil benchmark West Texas Intermediate (WTI) rose 2.5% and is higher today. Brent gained 2.2% to $79.40 a barrel.