Global stocks down after weak Chinese data - 16.5.2022

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, slid 0.2% on Friday despite Federal Open Market Committee (FOMC) member Mester joining other members of policy setting committee supporting rate hikes at next meetings by saying it is “appropriate to raise policy rate another 50 Basis points at each of next two meetings.”

Both GBP/USD and EUR/USD reversed their sliding Friday while euro area statistical office Eurostat data showed industrial production in euro zone shrank by 1.8% in March from the previous month, a slower downturn than the 2.1% expected. Pound is lower against the Dollar currently while euro is up still. Both AUD/USD and USD/JPY reversed their retreating Friday with the Australian dollar lower against the Greenback currently but yen higher.

Futures on US equity benchmarks are down currently after US stocks rebounded on Friday led by tech shares despite University of Michigan report US consumer sentiment declined in early May to the lowest since 2011 on persistent concerns over inflation. The three main US stock benchmarks recorded daily gains ranging from 1.5% to 3.8%.

European stock indexes are lower currently after ending solidly higher on Friday led by travel and leisure shares. Asian indexes are retreating today led by Hong Kong’s Hang Seng index as China reported April retail sales plunged 11.1% on the year, almost twice the drop forecast, while industrial output dropped 2.9% when analysts had expected a slight increase.

Brent is edging down today after China reported April oil refinery output plunged to two-year low – down 11%. Prices ended higher on Friday as US gasoline prices jumped to a record high. US gasoline futures soared after domestic stockpiles fell last week for a sixth straight week, boosting refining profit margins to its highest since it hit a record in April 2020 when WTI finished in negative territory. West Texas Intermediate (WTI) futures rose 4.1% but is lower currently. Brent crude gained 3.8% to $111.55 a barrel on Friday.