Markets down while Wall Street advance continued - 8.11.2023

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 0.2% higher on Tuesday while the US goods and services deficit rose in September.

Both EUR/USD and GBP/USD accelerated their sliding yesterday while federal statistics office Destatis reported industrial production in Germany accelerated its decline in September. Both euro and Pound are lower against the dollar currently. USD/JPY reversed its sliding on Tuesday while AUD/USD accelerated its retreating with the yen lower against the Greenback currently and Australian dollar higher.

Futures on three main US stock indexes are lower currently as the yield on benchmark 10-year US notes edged up to 4.581% currently. Stock indexes ended higher on Tuesday with three main stock benchmarks recording daily gains in a range from 0.2% to 0.9% while Fed Governor Michelle Bowman warned she expected the Federal Reserve “will need to increase federal funds rate.”

European stock indexes are down currently after closing lower on Tuesday with oil and gas stocks leading losses weighed by a 23% drop in Saudi state oil giant Aramco net profit in the third quarter. Asian indexes futures are mostly falling today with Australia’s All Ordinaries ASX 200 Index defying the trend as major bank stocks were buoyed by the Reserve Bank’s decision to hike interest rates while commodity stocks declined as metal and oil prices retreated this week.

Brent is edging up currently. Oil prices ended sharply lower on Tuesday weighed by reports of about 1 million barrels per day (bpd) recovery in oil exports from the Organization of Petroleum Exporting Countries since their August lows. The US oil benchmark West Texas Intermediate (WTI) ended 4.3% lower but is higher today. Brent lost 4.2% to $81.61 a barrel.