Stocks down after Fitch cuts US rating - 2.8.2023

The Dollar strengthening continues 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 Tuesday.

EUR/USD reversed its retreating yesterday while GBP/USD accelerated its sliding. Both euro and Pound are lower against the dollar currently. USD/JPY slowed its climbing Tuesday while AUD/USD reversed its advancing with the yen higher against the Greenback currently and Australian dollar lower still .

Futures on three main US stock indexes are down currently ahead of ADP Non-Farm Employment Change report at 14:15 CET today. The yield on benchmark 10-year US notes has edged down to 4.021% currently. The ratings agency Fitch unexpectedly downgraded the US’ sovereign rating to AA+ from AAA yesterday in after market trade, citing worsening fiscal conditions. Stock indexes ended mixed on Tuesday as the ISM Manufacturing PMI report showed US manufacturing sector continued contracting in July, as it has been doing for nine straight months now. The three main stock benchmarks recorded daily returns in the range from -0.4% to 0.2%.

European stock indexes are down currently after a bearish session on Tuesday with auto shares leading losses. Asian indexes futures are retreating today with Japan’s Nikkei leading losses weighed by tech stocks.

Brent is edging lower today. Brent retreated yesterday before American Petroleum Institute estimates US crude inventories likely shrank by 15.4 million barrels in the week to July 28.. The Energy Information Administration will release its US inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) slid 0.5% and is lower today. Brent lost 0.6% to $84.91 a barrel.