Equities mixed after Wall Street advance reversed - 13.10.2023

The Dollar weakening has resumed today. 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, rose 0.6% on Thursday while the Department of Labor data showed the number of Americans who sought unemployment benefits over the last week was lower than the forecast while their number was steady.

Both EUR/USD and GBP/USD reversed their advancing on Thursday while Office for National Statistics reported the UK economy grew 0.2% over month in August, in line with expectations. Both euro and Pound are higher against the dollar currently. USD/JPY accelerated its advancing while AUD/USD accelerated its sliding yesterday with both the yen and the Australian dollar higher against the Greenback currently.

US stock indexes futures are up currently as the yield on benchmark 10-year Treasury notes edged down to 4.668%. The three main stock benchmarks ended lower on Thursday in the narrow range of -0.5% to -0.6% as investors digested inflation data showing US consumer prices increased more than expected in September.

European stock indexes are mixed currently after closing marginally up on Thursday led by oil and gas stocks. Asian stock indexes futures are mixed today with Hong Kong’s Hang Seng leading losses.

Brent is extending gains currently. Prices retraced higher yesterday despite a large build in US crude stockpiles. The Energy Information Administration data showed US crude inventories rose by 10.2 million barrels in the last week to 424.2 million barrels, much higher than expectations for a 500 thousand barrel rise. The US oil benchmark West Texas Intermediate (WTI) gained 0.7% and is higher currently. Brent futures added 0.2% to $86.00 a barrel on Thursday.