Stocks advance ahead of US inflation data - 31.8.2023

The Dollar weakening has reversed 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, slid 0.3% Wednesday.

EUR/USD slowed its advancing on Wednesday while GBP/USD accelerated its climbing while federal statistics office Destatis data indicated stronger German inflation than expected for August. Both Pound and euro are lower against the dollar currently. USD/JPY reversed its sliding yesterday while AUD/USD reversed its advancing with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are higher currently ahead of US inflation data at 14:30 CET today. The three main US stock indexes ended higher on Wednesday in the range from 0.1% to 0.5% as ADP data indicated US private payrolls recorded a 52.3% monthly drop while second-quarter GDP was revised lower - adding to bets that the Federal Reserve is done tightening.

European stock indexes futures are advancing currently after indexes closed marginally lower yesterday led by utilities stocks. Asian stock indexes futures are mostly rising today led by Japan’s Nikkei index with Chinese stocks down as China's largest private property developer Country Garden warned of default risks if its financial performance continues to deteriorate.

Brent is edging higher presently. Prices ended higher yesterday after a bigger than expected draw in US fuel stockpiles. Energy Information Administration reported US crude inventories fell by 10.6 million barrels last week. At the same time analysts expect Saudi Arabia, the world's biggest oil exporter, to extend its voluntary output cut into October, keeping oil supply tight. The US oil benchmark West Texas Intermediate (WTI) futures gained 0.6% and is higher currently. Brent crude added 0.4% to $85.86 a barrel on Wednesday.