Global retreat continues as US-China tensions resurface - 22.5.2020

The Dollar strengthening continues 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, added 0.3% Thursday despite report initial jobless claims jumped another 2.44 million last week. EUR/USD joined GBP/USD’s  continued sliding yesterday with both pairs lower currently as data showed euro-zone’s economic activity contracted less drastically in May while UK retail sales fell by a record 18% over year in April. USD/JPY reversed sliding yesterday while AUD/USD turned lower with both pairs down currently.

Futures on three main US stock indexes are in the red currently after a pullback Thursday. Earnings season is nearing the end with another batch of companies including John Deere, Hang Seng Bank and Fujifilm Holdings reporting quarterly results today. Stock indexes gave back part of previous session gains on Thursday led by technology shares: the three main US stock indexes recorded losses ranging from 0.4% to 1.0%. European stock indexes are falling today after ending solidly lower Thursday led by bank stocks. Asian indexes are falling today after reports China is planning to impose new national security legislation on Hong Kong. Heng Seng sank 5.7%.

Brent is pulling back today. Oil prices edged higher yesterday after the Energy Information Administration report Wednesday crude inventories at the storage hub in Cushing, Oklahoma, fell by about 5.5 million barrels for the week. The US oil benchmark West Texas Intermediate (WTI) futures ended higher yesterday: June WTI gained 1.3% but is lower currently. July Brent crude closed 0.9% higher at $36.06 a barrel on Thursday.