Risk off sentiment prevails after hawkish Fed - 21.9.2023

Senior Analyst

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Todays’ Market Summary

The Dollar strengthening is intact
The US stock index futures are lower currently
Gold prices are extending losses

Top daily news

Global stocks are trading down currently ahead of Bank of England interest rate decision at 13:00 CET today. Wall Street extended losses on Wednesday after Fed chair Powell warned of at least one more interest rate hike this year. Apple shares fell 2% underperforming the market amid UBS estimates that initial demand for Apple's high-end "Pro" handsets is actually softer relative to last year's models, Nvidia shares slumped 2.9% on Wednesday amid rising number of analysts’ estimates pointing to downside risk for the leader of AI chip industry.

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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, added 0.2% Wednesday after the Federal Reserve held interest rates unchanged as expected.

GBP/USD joined EUR/USD’s continued retreating on Wednesday as the Office for National Statistics data indicated UK inflation declined from the previous month. Both euro and Pound are lower against the dollar currently. USD/JPY accelerated its advancing yesterday while AUD/USD reversed its climbing with both the yen and the Australian dollar lower against the Greenback currently.

Stock Market news

The US stock index futures are lower currently ahead of US unemployment claims data at 14:30 CET today. The three main US stock indexes ended solidly lower on Wednesday in the range from -1.5% to -0.2% as Federal Reserve’s dot plot indicated an additional 25 basis point rate hike this year while Summary Economic Projections called for 50 basis points of rate cuts next year.

European stock indexes futures are down currently after indexes closed up yesterday with auto stocks leading gains. Asian stock indexes futures are in red today with Australia’s S&P/ASX 200 All Ordinaries index leading losses dragged by lower commodity prices.

Commodity Market news

Brent is edging lower presently. Prices ended lower yesterday while the Energy Information Administration data showed US crude inventories fell by 2.1 million barrels last week driven by strong oil exports. The US oil benchmark West Texas Intermediate (WTI) futures slid 0.9% and is lower currently. Brent crude lost 0.9% to $93.53 a barrel on Wednesday.