Stocks slide ahead of Fed meeting - 31.1.2023

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% on Monday.

GBP/USD accelerated its retreating while EUR/USD slowed its sliding on Monday as federal statistics agency Destatis reported German economy shrank in the fourth quarter. Both Pound and euro are lower against the dollar currently. USD/JPY reversed its sliding yesterday while AUD/USD accelerated its retreating with the higher yen against the Greenback currently and Australian dollar lower still.

Futures on three main US stock indexes are down currently with the yield on benchmark 10-year Treasury notes down at 3.509% as investors expect the Federal Reserve will hike rates by 25 basis points tomorrow. US stocks closed lower on Monday, with the three main stock benchmarks recording daily losses ranging from 0.8% to 2.0%.

European stock indexes futures are lower currently after closing lower Monday led by tech shares. Asian indexes futures are down today with Hong Kong’s Hang Seng index leading losses despite government data showing Chinese manufacturing and services activity rebounded sharply into expansion territory in January.

Brent is edging lower currently. Prices fell Monday while Russian exports remained strong despite a European Union ban and G7 price cap imposed on oil imports from Russia. US West Texas Intermediate WTI fell 2.23% and is lower currently. Brent lost 2.03% to $84.90 a barrel on Monday.