Equities track Wall Street retreat - 5.12.2023

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, ended 0.4% higher on Monday.

GBP/USD joined EUR/USD’s accelerated sliding on Monday as federal statistics office Destatis data showed German trade surplus rose more than expected in October. Both Pound and euro are lower against the dollar currently. USD/JPY reversed its sliding while AUD/USD reversed its advancing yesterday with the yen higher against the Greenback currently and Australian dollar lower still as the Reserve Bank of Australia left the cash rate target unchanged at 4.35%.

Futures on three main US stock indexes are down currently with the yield on benchmark 10-year Treasury down at 4.292%. US markets closed lower on Monday with the three main stock benchmarks recording daily losses in the range from -0.8% to -0.1% while the Census Bureau reported factory orders in the United States fell more than expected in October.

European stock indexes futures are mixed currently after closing marginally lower on Monday led by mining shares. Asian indexes futures are mostly retreating today with Hong Kong’s Hang Seng index leading losses despite private purchasing managers index survey by Caixin showing bigger than expected growth in China’s services sector in November.

Brent is retracing up currently. Prices ended lower on Monday as investors worried the 2.2 million barrel in crude oil production cuts announced las week by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, will not have a significant impact on global oil market. US West Texas Intermediate WTI fell 1.39% but is higher currently. Brent lost 1.08% to $78.03 a barrel on Monday.