Stocks rebound buoyed by China’s rate cut - 20.5.2022

The Dollar strengthening has resumed 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, fell 0.7% Thursday while the US Bureau of Labor Statistics reported more Americans applied for initial jobless claims last week than expected as their number rose from last week.

Both EUR/USD and GBP/USD reversed their retreating Thursday despite the European Central Bank report euro zone current account recorded €1.6 billion deficit in March, down from €15.7 billion surplus in previous month. Both euro and Pound are down against the Dollar currently. AUD/USD resumed its climbing yesterday while USD/JPY slowed its retreating with the yen lower against the Greenback currently and Australian dollar little changed.

US stock indexes are up currently after ending lower Thursday following sharp selloff the previous day. The three main US stock benchmarks extended losses after a choppy session yesterday, recording daily returns in the range of -0.8% to -0.3%.

European stock markets are recovering today after closing lower Thursday, led by food and beverages shares. Asian stocks are rising today with Hong Kong’s Hang Seng index leading gains as the People’s Bank of China cut its five-year loan prime rate (LPR) by 15 basis points, a sharper cut than had been expected.

Brent is inching down presently. Prices ended up Thursday. The US oil benchmark West Texas Intermediate (WTI) gained 2.4%. Brent crude rose 2.7% to $112.04 a barrel on Thursday.