Equities track Wall Street advance - 19.7.2023

Senior Analyst

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Todays’ Market Summary

The Dollar strengthening is intact currently
Futures on three main US stock indexes are up
Gold prices are flat currently

Top daily news

Stock markets are mostly rising currently after Wall Street notched back-to-back gains on Tuesday. Apple stock dipped 0.13% underperforming market, Microsoft rallied 3.98% on Tuesday adding $100 billion in market value after the software giant announced it will charge users an additional $30 per month for the use of generative AI with tools such as Teams, Excel and Word.

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Forex news

The Dollar strengthening 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, slipped 0.1% on Tuesday.

EUR/USD joined GBP/USD’s continuing retreating yesterday. Both euro and Pound are lower against the dollar currently. USD/JPY reversed its retreating Tuesday while AUD/USD persisted its sliding with both the yen and Australian dollar lower against the Greenback currently.

Stock Market news

Futures on three main US stock indexes are up currently ahead of release of US housing market data at 14:30 CET today. The yield on benchmark 10-year US notes has edged down to 3.766% currently. Stock indexes extended gains on Monday despite data showing retail sales rose less than expected in June while industrial production at domestic factories unexpectedly fell during the month. The three main stock benchmarks recorded daily gains in the range from 0.7% to 1.1%.

European stock indexes are rising currently after a bullish session on Tuesday with chemicals and retail shares leading gains. The yield on two-year UK government bonds, which are sensitive to rate expectations, declined today after lower than expected UK inflation data for June. A 50-basis point hike from the Bank of England in August now looks significantly less likely. Asian indexes are mostly advancing today with Chinese stocks defying regional trend.

Commodity Market news

Brent is extending gains today. Brent rose yesterday after the US Energy Information Administration (EIA) projected US shale oil production will likely decline in August for the first time since December. The Energy Information Administration will release its US inventory data at 16:30 CET today. On wheat Ukrainian export deal through Black sea Kremlin said today that unless the United Nations implemented the terms of a memorandum about Russian agricultural exports within three months, Moscow would not restart talks about the deal. The US oil benchmark West Texas Intermediate (WTI) rose 2.2% and is higher today. Brent gained 1.4% to $79.63 a barrel.