Equities inch up ahead of US data releases - 15.9.2022

The Dollar strengthening has resumed 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, slid 0.2% Wednesday as data showed a modest slowing in the producer price index.

Both GBP/USD and EUR/USD reversed their sliding on Wednesday while the Office for National Statistics reported UK inflation unexpectedly slowed in August. Euro and Pound are lower against the Dollar currently. USD/JPY reversed its climbing yesterday while AUD/USD reversed its sliding with the yen lower against the Greenback currently and Australian dollar higher still.

The US stock index futures are up currently ahead of US retail sales and manufacturing reports due at 14:30 CET today. The three main US stock indexes booked gains ranging from 0.1% to 0.2% Wednesday while Producer Price Index for final demand declined 0.1% over month in August, in line with expectations.

European stock indexes futures are rebounding currently after closing down yesterday led by mining shares while European Commission President Ursula von der Leyen said EU will launch a “deep and comprehensive reform” of the electricity market so that “consumers should reap the benefits of low-cost renewables.” Asian stock indexes futures are advancing mostly today with Hong Kong’s Hang Seng Index leading gains while People’s Bank of China maintained its medium-term policy rate.

Brent is edging lower currently. Prices rose yesterday after the International Energy Agency (IEA) forecast widespread switching from gas to oil for heating purposes, saying it will average 700,000 barrels per day in October 2022 to March 2023 - double the level of a year ago. The US oil benchmark West Texas Intermediate (WTI) futures rose 1.3% but is lower currently. Brent crude added 1% to $94.1 a barrel on Wednesday.