Equities retreat after US producer prices report - 12.12.2022

The Dollar strengthening continues 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% Friday after the Bureau of Labor Statistics report the US wholesale prices rose 7.4% over year in November.

GBP/USD continued its climbing on Friday while EUR/USD reversed its advancing. Both Pound and euro are lower against the Dollar currently. Both USD/JPYand AUD/USD slowed their advancing Friday with both the yen and Australian dollar lower against the Greenback currently.

Futures on US equity benchmarks are down currently after US stocks closed lower on Friday after stronger than expected November wholesale prices report sparked concerns the Fed may need to hike interest rates another 75-basis points at its meeting this Wednesday. The three main US stock benchmarks recorded daily losses ranging from 0.7% to 0.9%.

European stock indexes futures are down currently after stocks closed higher on Friday with construction and material shares leading gains. The UK government on Friday announced major reforms to financial regulation including a relaxation of the rule that requires banks to separate their retail operations from their investment arms. Asian indexes futures are mostly retreating today with Japan’s Nikkei Index defying the general trend .

Brent is little changed at present as the Keystone pipeline supplying the United States remained shut. Prices fell Friday despite gains in the range of 1% earlier in the session after Russian President Vladimir Putin said the world's biggest energy exporter could cut output in response to a price cap on its crude oil exports. West Texas Intermediate (WTI) futures lost 0.6%. Brent crude slipped 5 cents to $76.10 a barrel on Friday. Both prices posted weekly losses of around 10% each.