Markets buoyant after Wall Street closes at fresh records - 1.11.2021

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, jumped 0.8% on Friday after Commerce Department data showed US inflation rose 4.4% over year in September, its biggest jump since January 1991.

Both EUR/USD and GBP/USD reversed their climbing Friday after the German statistics department Destatis report the German gross domestic product (GDP) rose by 1.8% over quarter in the third quarter when a 2.2% growth was forecast. Both euro and Pound are lower against the Dollar currently. USD/JPY revered its sliding Friday while AUD/USD reversed its advancing with both the Australian dollar and yen lower against the Greenback currently.

Futures on US equity benchmarks are up currently ahead of Institute for Supply Management’s Manufacturing PMI report due at 15:00 CET today. The Wall Street closed at records Friday despite disappointing results from Amazon and Apple which missed earnings expectations citing supply chain bottlenecks: the three main US stock benchmarks recorded daily gains ranging from 0.2% to 0.3%.

European stock indexes are up currently after ending mixed on Friday with utilities shares leading losses. Asian indexes are mostly advancing today with Chinese markets down after weekend data showed a sharper than expected contraction of Chinese factory activity. NIKKEI is lading gains after Prime Minister Fumio Kishida’s Liberal Democratic Party did better than expected at Sunday’s election, easily retaining a majority.

Brent is retreating currently ahead of OPEC meeting this week where the Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, are expected to maintain production cuts. Prices rose on Friday despite energy services firm Baker Hughes report the number of active US oil rigs rose for a 15th month in row in October. West Texas Intermediate (WTI) futures added 0.9% but is lower currently. Brent crude rose 6 cents to $84.38 a barrel on Friday.