Markets down after Wall Street dip - 1.9.2022

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, slipped 0.1% Wednesday as ADP data showed American employers increased the number of private jobs by lower than expected 132,000 in August.

GBP/USD continued its sliding on Wednesday while EUR/USD accelerated its climbing as Eurostat reported euro zone inflation rose to another record high in August. Euro and Pound are lower against the Dollar currently. USD/JPY accelerated its climbing yesterday while AUD/USD slowed its sliding with both the Australian dollar and yen lower against the Greenback currently.

The US stock index futures are down currently ahead of Bureau of Labor Statistics and Institute for Supply Management reports on unemployment claims and Manufacturing PM due today at 14:30 CET and 16:00 CET respectively. The three main US stock indexes booked losses ranging from 0.6% to 0.9% Wednesday as Cleveland Fed President Loretta Mester said the US central bank would need to boost interest rates somewhat above 4% by early next year and hold them there.

European stock indexes futures are retreating currently after closing down yesterday led by oil and gas shares. Asian stock indexes futures are falling mostly today with Hong Kong’s Hang Seng Index leading losses after purchasing managers' indexes from South Korea, Japan and China all pointed to slowing economic activity.

Brent is edging lower currently. Prices fell yesterday despite the Energy Information Administration report showing domestic crude oil inventories fell by 3.3 million barrels last week while gasoline stocks were down 1.2 million barrels. At the same time the Joint Technical Committee of the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, said it now sees an oil surplus this year of 400,000 barrels per day (bpd), up 100,000 bpd from its forecast a month earlier. The US oil benchmark West Texas Intermediate (WTI) futures fell 2.3% and is lower currently. Brent crude lost 2.8% to $96.49 a barrel on Wednesday.