Equities pause after Wall Street rebound - 13.3.2024

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, added 0.1% on Tuesday.

EUR/USD halted its sliding while GBP/USD slowed its retreating yesterday as the Office for National Statistics reported that year over year UK wage growth slowed back to August to October 2022 level. Both euro and Pound are higher against the dollar currently. USD/JPY reversed its sliding and AUD/USD slowed its retreating on Tuesday with the yen lower against the Greenback currently and Australian dollar higher.

Futures on three main US stock indexes are mixed currently with the yield on benchmark 10-year US notes up at 4.149%. Stock indexes ended solidly higher on Tuesday with three main stock benchmarks recording daily gains in a range from 0.6% to 1.5% led by tech shares while data showed a small but notable acceleration in February inflation from a month earlier.

European stock indexes are up currently after closing higher on Tuesday with autos stocks leading gains. Asian indexes futures are mixed today with Japan’s Nikkei leading losses amid ongoing wage negotiations between major Japanese employers and employee unions.

Brent is retracing higher currently. Prices retreated yesterday before the American Petroleum Institute (API) report showing US crude stockpiles fell by 5.521 million barrels last week. Meanwhile U.S. Energy Information Administration (EIA) raised its 2024 outlook for domestic oil output growth by 260,000 barrels per day to 13.19 million barrels, from a previously forecast rise of 170,000 bpd. The Energy Information Administration (EIA) will release its US inventory data at 15:30 CET today. The US oil benchmark West Texas Intermediate (WTI) lost 0.5% but is higher today. Brent slid 0.4% to $81.92 a barrel on Tuesday.